Overview

Velocity One (“V1” or the “Company”) is a recent combination of two sole-source aerospace & defense component manufacturing businesses, Cartridge Actuation Devices (“CAD”) and Emcore Corporation (“Emcore”), positioning itself as an industry leader with operating units capable of designing, manufacturing, and supporting a wide range of critical products including navigational solutions, energetic devices, and power system solutions.  The combination was supported via a buyout with Charlesbank Capital Partners (“Charlesbank” or the “Sponsor”), a Boston based middle market private investment firm with approximately $20 billion of assets under management. Charlesbank focuses on management-led buyouts, growth capital financings, opportunistic credit, and technology investments.

Situation

Following the closing of the combination, Charlesbank engaged SLR to assist with the refinancing of the Company’s existing debt to ensure sufficient ongoing liquidity to support its growth initiatives.

Solution

SLR Credit Solutions acted as Agent on a Senior Credit Facility comprised of a term loan and revolver. The financing has a first lien on all assets and was supported by the Company’s working capital, machinery & equipment, and real estate. Proceeds were utilized to refinance existing debt and provide greater flexibility and liquidity to pursue its growth strategy.