Griffin Serves as Financial Advisor and Placement Agent to Cellucap

Company Overview
Cellucap Manufacturing, Inc. and affiliates (“Cellucap”) is a leading manufacturer and distributor of disposable products for the food service, healthcare and safety industries. Products include disposable apparel, protective gear, cleaning products and other disposable products which are sold through distributors internationally. Cellucap is a multi-generational family owned business headquartered in Philadelphia, Pennsylvania, with operations throughout North America, including Canada, the Caribbean and Mexico.

Situation
Cellucap obtained senior and subordinated credit facilities to support the transformational acquisition of Disco, Inc. in McDonough, Georgia, which was completed in 2011. After successfully integrating Disco and repaying the senior term loan portion of the acquisition financing, the subordinated debt along with the associated equity warrants were set to reach maturity in 2017. Cellucap’s existing senior lender was unwilling to finance the full repayment of the subordinated debt and warrants, nor were other outside senior lenders contacted by the company.

Solution
Cellucap engaged Griffin Financial Group to act as financial advisor and placement agent in the refinancing of the company’s outstanding debt and warrants. Griffin procured multiple financing offers and negotiated terms with various lenders offering an array of senior, junior and unitranche debt options. Cellucap ultimately chose the proposal submitted by Sterling National Bank, based in New York, to provide a term loan and senior revolving credit facility. Proceeds were sufficient for Cellucap to repay all existing debt obligations and repurchase the warrants without the need for new subordinated debt, as had been initially anticipated by the company. This structure dramatically reduced Cellucap’s cost of capital. The transaction closed on April 5, 2017.

For more information on this transaction, contact John A. Lee, Senior Managing Director, at 610.205.6106 or Thomas A. Hill, Vice President, at 610.478.2034.