J.B.& Co.
Share:

J.B.& Co.

J.B. & Co. is a Calgary-based private equity firm focused on investing in small and medium sized North American businesses. The firm is a small group of high-performing practitioners dedicated to the success and longevity of their investments for and with their clients.

Issue

The firm acquired a large energy infrastructure provider. Shortly after acquisition, the portfolio company developed cashflow issues leading to covenant breaches and being transferred to the bank’s special loans group.

The banking relationship quickly soured. Managing the bank became a full-time endeavor, with weekly bank meetings, weekly cashflow forecasts, and engagement of an expensive 3rd party consultant that provided limited value to the customer.

Solution

After a refinance was turned down by each of the major banks, J.B. & Co. was introduced to Ashdown Capital by a trusted advisor. It was immediately evident to Ashdown that this was not currently a traditional bank deal. The cashflow issues were externally driven with resolution in sight, but the company required flexibility to navigate the turnaround.

Despite the cashflow hiccup, the company boasted investment-grade customers and highly marketable equipment. After consulting with several major financial institutions, we determined that an asset-first lender was the right fit – one that understood the narrative and recognized the value of the assets.

The first term sheet was secured within two weeks of engagement, though it took several months to secure working capital financing as well. While somewhat more expensive than traditional bank debt, the new lender is exceptionally accommodating, enabling the company to shift its focus back to its core business rather than its banking concerns.

Client Testimonial

“Kyle successfully refinanced our loans in a challenging situation. As the company’s interim CFO, I lacked the time and Rolodex to personally search for a suitable new lender. Kyle’s contribution is crucial to the success of our investment.” – Jalal Jetha, Managing Director

Services Used:

  • Working Capital
  • Debt Restructuring
  • Equipment