DIAMOND DECISIONS, INC: (DDI) – $4.5 Million
Background: DIAMOND DECISIONS, INC., owner and operator of PRIVACYWEAR COLLECTION had the opportunity to take advantage of a national promotion, which was led and marketed by one of the country’s leading retailers. However, due to the double-digit growth the company had experienced over the past twelve months, their existing credit facility was fully extended and could not be expanded in time to capitalize on the opportunity. The client needed to secure a preferred equity and or mezzanine credit facility, which would not violate their existing loan covenants, which created a very unique situation, which CCP had to work within.
Problem: The transaction was time sensitive and had to have a firm commitment by year-end 09.
Strategy: Working quickly with one of its private investors, CCP arranged the commitment within two weeks of being engaged by the client, which allowed the sponsor the option to take advantage of a time sensitive opportunity.
Result: CCP arranged a $4.5 million preferred equity, convertible to mezzanine, financing commitment for DDI.