The Situation

Jordan Sands approached Teneca to assist in raising capital for the conversion of the company’s existing stone mining operation to a frac sand mine.

The land and its mineral reserves were valued at approximately $50 million; however, even with the land and new equipment as collateral, the owners faced a financing need that was challenging for traditional lenders to underwrite.

We tapped unrecognized financing capacity in a related entity to free up cash to capitalize this new project.

The Transaction

With a creative approach and our substantial relationships within the national lending community, we assembled a financing package that included a $49 million recapitalization of the publishing company to fund its rapid growth and allow for a $25 million investment in Jordan Sands.

Based on the value of the equipment and real estate as well as the equity investment in Jordan Sands by the publishing entity, we arranged a $24 million stand-alone financing package.

With this financing and the $25 million capital infusion from the publishing company, we were able to fund the commencement of operations by Jordan Sands, while avoiding any corporate guaranty from Coughlan Companies, Inc., or equity dilution or stock pledges by the owners.

The Result

Leveraging the family’s multi-generational business history, a strong management team, the publishing company’s success and our own track record structuring complex transactions, we were able to obtain creative project financing. The transactions for both publishing and mining were achieved without any dilution to the owners’ interests.

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