We first reached out to CLG in early 2022 (following its IPO in 2021) to begin establishing a relationship and an active dialogue with the CFO. We recognized that they were an acquisitive business that would eventually need additional funding as the balance sheet was lowly levered following its IPO. The active dialogue and regular updates on the business and its strategic initiatives allowed us to be well positioned to move quickly to support the business when needed.
In mid-September 2022, CLG indicated that they were exploring the acquisition of ISP Electronics ("ISP"), a US-based consumer electronics refurbisher / reverse logistics provider. This would be a transformative acquisition for CLG by significantly growing its earnings base and making the US its dominant end market.
In April 2023, we provided CLG with a US$40.0 million Senior Term Loan, a US$7.5 million Revolving Credit Facility, and a US$5.0 million Delayed Draw Term Loan to fund the acquisition of ISP and streamline its debt across multiple lenders in Australia and the US. Subsequent to PPC providing funding certainty through its commitment, CLG was able to also raise A$45 million in funding from the equity markets to partially fund the acquisition.
CLG appreciated our certainty of execution, ability to provide US$ funding, flexibility, and responsiveness. We are proud to call CLG a partner and we look forward to supporting the business as it continues to execute on its ESG related growth strategy in years to come.
