FGI Provides Milestone Partners a $13MM Revolver and Term Loan for their Portfolio Company
“We had worked with FGI previously on another refinance within our portfolio and knew once again FGI would be able to deliver a flexible and creative working capital solution to support our investment in Martex Fiber. We found ourselves at an inflection point in the business and our incumbent lender was not able to take us to the next phase of our growth plan as part of a long-term transformation of the business. FGI took great care to learn the nuances of our global operations and provided not only a revolver and term loan to support the working capital needs but a capex line to allow us to take the final steps in a long term, strategic new product line which was essential for Martex’s future success.”
For over 25 years, Milestone Partners has been specializing in making equity investments in lower-middle market companies to help accelerate growth. One of their portfolio companies, Martex Fiber, a provider of high-quality textile waste services, required a larger facility. Their incumbent bank could not provide them with a larger line of credit and capex facility needed for their expansion. Martex was looking for a lender to provide additional liquidity to acquire the equipment required for their long-term development.
The transaction was also made challenging due to Martex’s operations in Honduras, Nicaragua and the Dominican Republic. They needed a lender who was accommodating and willing to resolve the various international complexities surrounding the transaction, specifically with the ability to maximize liquidity against assets in the US and Central America.
FGI’s global team worked tirelessly to provide a $13MM revolver and term loan to support Martex’s working capital needs, as well as a capex line for the expansion of the business. Additionally, FGI was able to offer suggestions during their review which further improved Martex’s operational controls. Thanks to the success of all the parties involved, Martex was able to execute on refinancing their line of credit with a larger, more flexible facility that will transform the company’s success and support their end goals.