Opus Bank’s Corporate Finance division partners with Tree Line Capital Partners, LLC to provide a unitranche facility to YDesign Group, LLC a portfolio company of Alpine Investors, to support the acquisition of Lumens
Overview of Transaction
Founded in 2001, YDesign Group, LLC (“YDesign”) is a leading online retailer of modern and contemporary lighting, furnishings, and decorative plumbing products to consumers and trade professionals. Lumens, founded in 2004, is also an online retailer of similar products and categories.
Opus Bank (“Opus”) partnered with Tree Line Capital Partners, LLC (“Tree Line”) to provide the necessary senior debt to facilitate YDesign’s acquisition of Lumens.
Significance of Transaction
Alpine Investors (“Alpine”) is a private equity firm specializing in investments in founder-owned, middle-market companies in the software, internet, and business services sectors.
Opus, Tree Line, and Alpine have worked together on several past transactions. The partnership allowed for the financing to be completed in a smooth, time-efficient process.
Given the asset-light nature of these businesses, the financing structure required an enterprise value or cash flow approach to lending.
Opus Bank's Role
Opus provided a cash flow based revolver and a portion of the unitranche term loan. The Tree Line and Opus partnership provided a flexible, cost-effective solution to the borrower and allowed YDesign to successfully complete the acquisition of Lumens.