Prime Commercial Lending structures $34 million buyout deal
The Business Review Date: Monday, December 31, 2012, 12:48pm EST
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Donna Abbott Vlahos
Kris Roglieri, president and CEO of Prime Commercial Lending, said the $34 million partner buyout of Diamond Packaging in Rochester, New York, presented a number of complicated issues.
Prime Commercial Lending of Albany, New York, organized a $34 million buyout by one 50-percent partner in a Rochester packaging company from the other partner.
The structure of the buyout of Diamond Packaging Holdings LLC, a 100-year-old company, consisted of a $34 million capital stack including $24 million in a senior debt facility with a revolving credit line, and term debt for equipment and the partner buy-out. In addition, the financing included a capital raise of equity, mezzanine finance and junior debt.
The undisclosed lender took a 24 percent stake in the Diamond, which allowed the buying partner, CEO Karla Fitcher, to hold the majority interest in the company without contributing equity to the "complicated" transaction, according Kris Roglieri, president and CEO of Prime Commercial Lending.
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