LBC Credit arranges $97m loan to back electronics merger

The Philadelphia-based lender has issued a senior credit line towards the combination of two Monomoy Capital-sponsored electronics companies.  

LBC Credit Partners, the US mid-market lender, provided $97 million in senior secured credit facilities to support the combination of Monomoy Capital Partners’ portfolio companies Escort and Cobra Electronics.

The new entity will operate under a holding company structure with Cedar Electronics Holdings as the parent. The capital was used to refinance existing debt, fund a distribution to shareholders and pay other fees and expenses, LBC said in a statement.

Escort runs a police radar detection app for iOS and Android. It designs and manufactures many of its products in Ontario and sells them on Amazon. 

Cobra is a designer and distributor of consumer electronic products. The company deals in two-way radio, radar detector and citizens band radio sectors. The company also offers marine radios, power inverters, dashboard cameras and other portable electronics. The Chicago-based company has expanded many of its product lines into Europe.

New York-based Monomoy Capital is a private equity firm with about $1 billion in capital across funds that primarily make control investments in mid-market businesses in manufacturing, distribution, consumer products and food services.

LBC has worked with Monomoy on other deals in the past. In June 2013, it provided a $35 million second lien term loan to support the recapitalisation of MPI Products, an automotive parts company backed by Monomoy.

Philadelphia-based LBC Credit is a provider of mid-market financing options, including senior, unitranche, second lien, junior secured and mezzanine debt and equity co-investments, supporting sponsored and non-sponsored transactions.

With about $1.75 billion in capital, LBC has made investments in companies located throughout North America across a range of industries. The firm closed its third credit fund at $839 million in May last year and is still investing that capital, as PDI has previously reported