Middle market retailer moving its banking business to a new institution

Financial sponsor has successfully rolled-up 40 dental practices and wants to restructure the associated debt.

The situation

The successful roll up has driven strong cash flow. The sponsor asks their incumbent bank to stretch and recast their existing term loan to accommodate the refinance.

The problem

Cash flow is strong but the bank wants to limit the maximum senior funded leverage ratio.

The CollateralEdge solution

The bank uses 18% of CollateralEdge support to reduce its net senior leverage and meets its underwriting requirements.

Bank wins

The bank increases interest income while maintain its high underwriting standards. By meeting the sponsor’s request, they solidify their professional relationship yielding more referrals.


The results were outstanding.

“CollateralEdge is solving a massive problem for community banks that will positively impact thousands of hard – working entrepreneurs.”

— Kneeland Youngblood, Founding Partner, Chairman & CEO, Pharos Capital

Borrower wins

The sponsor is able to remove expensive debt from its capital stack and free up cash to deploy in other areas.