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The Situation

Capstone had been transitioning from a stable, single-market educational publishing focus to multiple markets with enhanced growth opportunities, especially within the digital media space. The company had expended significant amounts on content development, driving the ability to adapt and/or repurpose its existing content for multiple markets, thus evolving to an educational technology company, not just a content publisher.

The Transaction

Teneca worked with company management and directors to structure a $49 million recapitalization with a new lender. We refinanced the company’s existing senior debt and provided for a $25 million investment into the Jordan Sands project.

The Result

Our flexible financing structure increased Capstone’s borrowing capacity to support its own growth as well as allow for a significant investment in and support of the new sand mining operation, while avoiding any corporate guaranty from Coughlan Companies, Inc., equity dilution or stock pledges by the owners.

Capstone is our second client to win a major business award in 2014: Bob Coughlan, Chairman, and Tom Ahern, CEO, were named winners in the Ernst & Young Entrepreneur of the Year 2014 Upper Midwest awards program.