Griffin Represents Emtec in $55 Million Unitranche Financing Led by LBC Credit Partners
Emtec, Inc. (“Emtec”), based in Radnor, PA, is a leading IT consulting firm providing industry-specific transformative digital solutions to world class organizations in the enterprise, government and education markets from its offices in the U.S., Canada and India. Emtec’s offerings span the entire IT lifecycle, from Advisory through Enterprise, Custom, Mobile and Cloud Applications, as well as Analytics and Infrastructure Services. Emtec is majority-owned by its management team, and has over 800 professionals worldwide.
After several years of strategic transformation, which included divestitures and acquisitions, the majority of Emtec’s complex debt capital structure was skewed towards high-cost subordinated debt, spread amongst three different lenders in addition to the senior lender. In addition, the company needed additional capital to finance its (i) third acquisition in 2015, Summit Technology, Inc. (“Summit”), (ii) limited share repurchases from non-management shareholders, and (iii) future acquisitions and working capital.
Emtec engaged Griffin Financial Group to act as financial advisor and placement agent in the refinancing of the company’s debt. In order to meet the company’s goals, Griffin determined that a simplified lender structure with greater financing capabilities would enable Emtec to move more quickly in the future on larger acquisition opportunities. Griffin procured multiple financing offers and negotiated terms with various lenders offering both senior, junior, and unitranche debt and equity capital options. Emtec ultimately selected LBC Credit Partners as the lead lender on $55 million in unitranche credit facilities. The credit facility consortium also includes prior lenders Star Mountain Capital and Peachtree Equity Partners, in addition to new lenders Crystal Financial SBIC, GarMark Partners and Garrison Investment Group.