Early stage, privately held originator of sub-prime indirect auto loans
Issues -- Despite having a very attractive management team, business model and value proposition, the company’s founder and majority stockholder, a major auto dealer, had limited equity to devote to this key, but ancillary business opportunity.
Solution -- Woodcliff conducted a review of strategic options and subsequently implemented a $50 million private placement of a combination of senior and subordinated debt which was sufficient to ensure the company’s growth beyond the start-up phase and simultaneously limited the founder and majority stockholders equity commitment and exposure.