A client that provides heating, ventilation and air conditioning services wanted to purchase a business in the same industry as they saw in it great potential.
So in October, 2017 a Community Futures office and BDC partnered under a Pari-passu agreement in order to make this change of ownership possible.
The transaction consisted of the following:
Subsequent to the original purchase and financing, in March 2018 the client approached BDC to purchase real estate as they were outgrowing their current leased location. BDC and the Community Futures office agreed to supersede their existing loans and provide the financing needed for the real estate with another Pari-passu agreement. In addition, the client saw an opportunity to better market their business, so they accepted a BDC Sales & Marketing consulting mandate, also financing under this new loan. To summarize, this second transaction was as follows:
