GB Credit Partners, the investment management affiliate of Gordon Brothers Group, announced it has provided a senior secured credit facility of approximately $15 million to JW Resources which will finance its ongoing working capital needs. JW Resources, majority owned by Bayside Capital, an affiliate of H.I.G. Capital, is focused on identifying, acquiring and operating low-cost thermal and metallurgical coal mining and related assets in the United States. In February 2013, JW Resources acquired the Straight Creek and Red Bird thermal coal complexes located in the Central Appalachian coal basin in eastern Kentucky.
“The financing led by GB Credit Partners provides us with capital to execute our growth plan and fund new initiatives for the JW Resources platform,” said Brett Craig of Bayside Capital. “GB Credit Partners’ in-house resources made them the logical partner for us.”
The facility provided by GB Credit Partners includes a term loan secured by the company’s machinery & equipment and a revolving credit facility secured by the company’s working capital assets.
GB Credit Partners relied on the internal expertise of Gordon Brothers Group’s Commercial & Industrial Division to perform due diligence on JW Resources’ assets, including mining machinery & equipment.
“JW Resources has a strong management team and a well-positioned asset base to service its utility and industrial customer base” said Lawrence Klaff, Managing Director of GB Credit Partners. “We were impressed with JW Resources’ low-cost, well-run operations and are pleased to support its future growth plans.”
While GB Credit Partners has previously executed transactions in the energy industry, this transaction broadens its expertise in that market, marking its first entry into the coal mining sector. GB Credit Partners has extended financing to firms in over 25 industries including consumer products, food & beverage, manufacturing, retail and textiles.
GB Credit Partners originates, structures and invests in private market debt. Debt investments are made in the form of senior, unitranche, second lien or mezzanine loans ranging from $10 to $50 million to middle-market companies in need of capital to effect strategic change. Investments are made across 25 industries within five major sectors: consumer, commercial & industrial, financial services, intellectual property and real estate.
Headquartered in Knoxville, Tennessee, JW Resources, Inc. is focused on identifying, acquiring and operating thermal and metallurgical coal mining and related assets in the United States.