Opus Bank’s Corporate Finance division provides senior debt financing for investment in Avaap by New MainStream Capital
Significance of Transaction
- NMS is a private investment firm specializing in strategic equity investments and leveraged buyouts with a concentration on service-oriented businesses in the following three sectors: Healthcare Services, Business Services, and Consumer Products and Services.
- Given the asset-light nature of these businesses, the financing structure required an enterprise value approach to lending.
- Opus provided a cash flow facility to facilitate NMS’ investment in Avaap.
Overview of Transaction
- Avaap, founded in 2006 and headquartered in Edison, NJ, is the fastest-growing IT services and software development firm strategically focused on Infor and is a premier implementation services provider for Infor’s enterprise application software suite of on-premise and cloud solutions.
- Avaap is one of the largest North American Infor-only IT services and software development firms, with a global center of excellence in Chennai, India, and deep industry expertise in equipment rentals and sales; healthcare; public sector; manufacturing and distribution; food and beverage; as well as retail and fashion.
- New MainStream Capital (“NMS”), in partnership with Avaap CEO and Founder Dhiraj Shah, invested in Avaap.
- Opus Bank (“Opus”) provided term financing to support the investment and a revolving line of credit for working capital.
Opus Bank's Role
- NMS needed to close transaction within two weeks of executing the proposal letter.
- Diligence, underwriting, and all documentation were completed within this time frame, and the transaction was successfully funded by the required closing date.