CASE STUDY — SELL SIDE

Sector: Technology
Industry: Consulting, Systems Integration and Managed Services
Has been refinanced with senior debt financing provided by:

Company

Red Clay Consulting, Inc. (“Red Clay”) is a boutique consultancy for the utility industry, delivering technical and business solutions on customer information systems, customer experience, meter data management systems, mobile field applications, LodeStar, and load profiling & settlement. 

Situation

Red Clay was founded in 2001 by Paul Marnell and Mike Cocroft, who had built a successful boutique consulting firm exclusively servicing the energy and water industries, with a primary focus on Oracle utility meter to cash software solutions. The Company had generated double digit historical sales growth and a strong pipeline to support continued top-line expansion. Red Clay was seeking growth capital that would provide increased financial flexibility from a lender with understanding of its long cash conversion cycle from RFP identification to initial cash collection and borrowing base inclusion for its operations in Canada and Colombia. The capital infusion was specifically for use of refinancing the company’s existing revolving credit facility, repaying other corporate indebtedness, increasing working capital and for general corporate growth purposes.

Advisory Role

BCA was engaged by Red Clay as its exclusive advisor in the capital raise. With significant uncertainty in the debt capital markets when BCA launched its marketing process in March 2020, BCA approached a targeted group of lenders with interest and knowledge in project-based technology companies, that were willing to provide working capital for companies with non-domestic business operations, and that had the risk appetite during the onset of the COVID crisis to underwrite loans with new customers.

Result

Despite a two-month COVID created delay while the debt markets stabilized, Bravaldo Capital Advisors successfully refinanced Red Clay with a senior line of credit and term debt facility from BBVA USA, a Sunbelt-based bank holding company ranked among the top 25 largest U.S. commercial banks based on deposit market share.

Bravaldo Capital Advisors

Bravaldo Capital Advisors is a boutique Atlanta based mergers & acquisitions and corporate finance advisory firm, providing independent economic and financial advice and execution services for lower middle market companies in a variety of industries with revenues typically between $10 million and $300 million. BCA offers a full range of transaction and advisory services, guiding clients through sell-side transactions and exit strategy planning, growth through acquisition, debt restructuring and corporate recapitalization. The BCA team is a senior deal team with extensive knowledge and insight into the full life cycle of M&A and corporate finance engagements.