America’s Auto Auction, Inc.
Monroe Credit Advisors worked with the management team of America’s Auto Auction, Inc. (the “Company”) to explore corporate finance alternatives. The Company is the third largest wholesale auto auction company with nine locations throughout the eastern United States. Key objectives were to simplify the capital structure, provide a favorable return to passive shareholders and provide capital to support acquired and organic growth. Management had a strong track record of integrating acquisitions and executing on its organic growth initiatives and was seeking a capital structure that was in sync with its goals. The Company partnered with Monroe Credit Advisors to utilize its leveraged finance expertise and relationships to raise a senior cash flow credit facility to facilitate a management buyout and provide debt capacity for future acquisitions.
Monroe Credit Advisors ran a targeted placement process with banks and leading commercial finance companies that focus on middle market cash flow lending, with a willingness to entertain “non-sponsored” transactions. The Company chose from a number of competitive proposals to drive the most flexible and favorable terms, ultimately selecting NXT Capital and GE Capital as Joint Lead Arrangers. The new credit facility consolidated the ownership structure, provided a return to passive shareholders and supplied incremental capital to allow the Company to continue to execute its growth strategy through organic initiatives and consolidating a highly fragmented industry. Monroe Credit Advisors’ affiliate, Monroe Capital, also participated in the credit facility.