LBC in senior financing for IT consultant

The Philadelphia lender has provided a $55.5m senior credit facility for Emtec, which will refinance the company’s existing debt as well as support its acquisition of Summit Technology.  

Emtec, a New Jersey information technology (IT) consulting company that provides industry-specific digital services, has signed new senior secured credit lines totalling $55.5 million with LBC Credit Partners.

LBC is a Philadelphia-based provider of financing for mid-market companies. 

The proceeds will refinance the company’s existing debt and to acquire Summit Technology. Alabama-based Summit is a healthcare-focused, consulting and managed services firm, specialising in various Oracle applications. Emtec and Summit announced the deal last week. 

The new facilities also provide a source of funding for limited share repurchases, working capital and future acquisitions. NewSpring Mezzanine Capital and MB Financial were refinanced out of the loans they held in the company, chief financial officer Greg Chandler told PDI

“We are pleased to add LBC Credit Partners to our team of financing partners to help accelerate our growth going forward,” Dinesh Desai, chairman and chief executive of Emtec, said in a statement.

“Emtec has entered into a new stage of growth and that growth will be fueled by the support of our new financing partners.  This transaction will enable us to move more quickly in the future on larger opportunities. The Summit team joining us at the same time is a great catalyst,” commented Chandler. “I would like to thank NewSpring Capital. We could not have achieved the success we had over the last few years without them. Steve Hobman and the team at NewSpring have been a tremendous partner for us and we thank them for their unwavering support since 2011,” he added.

Emtec’s advisors on the transaction included Griffin Financial Group, Stevens & Lee and Dechert. Cozen O’Connor represented Emtec in the acquisition of Summit.

Philadelphia-based LBC Credit has about $1.75 billion in assets under management. The firm targets companies with EBITDA greater than $5 million. The firm makes loans of between $10 million-$50 million to finance buyouts, growth capital, recapitalisation, refinancing and restructuring situations.

The firm raised its latest LBC Credit Partners III fund in May last year at $839 million, surpassing its $650 million target. LBC is in the process of launching its fourth fund now, PDI understands.