Capital Resource Partners has refinanced K2 Industrial Services
Lincoln International, a global mid-market investment bank, has announced the successful close of $38 million in total financing for K2 Industrial Services, Inc. (“K2 Industrial” or the “Company”), a leading provider of specialty industrial cleaning, painting and related facility maintenance services. The new credit facilities are comprised of a $20 million Senior Revolving Credit Facility and a $10 million First Lien Term Loan provided by PNC Bank N.A. and an $8 million Second Lien Term Loan provided by Fidus Mezzanine Capital, L.P. The financing was used to repay the Company’s existing indebtedness in favor of better terms and conditions, and to complete an acquisition.
As the Company’s exclusive financial advisor and placement agent, Lincoln International worked closely with K2 Industrial’s senior management team on all aspects of the transaction, helping to structure, arrange and negotiate the financing. “K2 Industrial continues to generate solid operating results in a challenging marketplace, and we believe we have significant long-term growth prospects.” said Richard Bartell, Chief Financial Officer of K2 Industrial. “In order to capitalize on our opportunities, we decided to refinance the Company’s existing debt with new financial partners able to grow with the business and create a capital structure with greater financial flexibility. Lincoln International’s deep knowledge of the capital markets provided us with the guidance we required to access new sources of capital at a time when most lenders are retrenching from the credit markets.”
Additionally, Lincoln International has developed a long-term relationship with Capital Resource Partners (“CRP”), having completed three successful transactions for the company since March 2003.
About K2 Industrial Services, Inc.
With more than 20 service locations across the United States, K2 Industrial Services, Inc. is one of the country’s largest providers of a specialty cleaning, painting, and maintenance services to industrial facilities across the nation. K2 provides its customers with mission-critical services, such as regular, comprehensive cleaning of production equipment and facility systems, scheduled and periodic plant maintenance, asset preservation programs, planned plant outages, as well as large scale or smaller, unplanned plant emergency projects. K2’s technical expertise, quick response times, outstanding safety record and ability to quickly mobilize highly-trained field employees with specialized equipment, allow the Company to provide higher quality maintenance services at a lower overall cost than a customer could otherwise perform on its own. The Company provides its services to approximately 500 customers in a variety of industries including steel, power generation, petrochemical, chemical, pulp and paper, automotive, transportation, amusement and theme-parks, government and medium to heavy commercial construction.
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