Pricoa Capital Group has provided financing for British data provider 118 Group. The financing consists of debt in multiple levels of the capital structure, though the exact amount of debt issued could not be determined by time of publication.
Donald Campbell, senior vice president at Pricoa, told PDI 118 was an attractive borrower due to its characteristics as a business and its management team. Pricoa normally looks for businesses generating steady revenue with low capital expenditure while also operating in industries with high barriers to entry, he added.
The financing of 118 will allow its co-chief executives to take a greater ownership stake in the business, Campbell added, something he said was also a positive. “You want entrepreneurs to be fully committed,” he said.
The financing has been provided as a combination of a senior facility, a senior accordion facility, subordinated notes and preferred equity, according to a company statement. Pricoa served as the only provider of capital to 118 for this financing.
It is understood the financing for 118 is being provided out of Pricoa’s Pricoa Capital Partners Fund V, a mid-market mezzanine-focused offering. Campbell told PDI Pricoa often provides junior debt to businesses alongside senior debt provided either by Pricoa’s parent company or banks. “Almost all transactions require senior funding as well,” he said.
Pricoa Capital Partners Fund V closed in January this year on $1.8 billion. The fund surpassed its fundraising target of $1.4 billion.