NEW YORK--(BUSINESS WIRE)--Harvest Capital Credit Corporation (“Harvest”) closed a $10.8 million junior secured debt financing for Yucatan Foods, L.P. (“Yucatan” or the “Company”) in support of a recapitalization, as well as to finance the Company’s long-term strategic growth initiatives. The debt financing was comprised of two tranches; an $8.2 million junior secured subordinated debt investment and a $2.6 million subordinated convertible note.
Headquartered in Los Angeles, CA, and founded in 1990, Yucatan is a pioneer in avocado processing and is consistently recognized within the food industry for outstanding taste, quality, and safety. Today, the Company offers an array of guacamole products in various flavors, which are found in leading supermarket chains and major food retailers across the U.S. and Canada. In terms of market share, Yucatan is the #2 guacamole brand in the U.S., and is the leading brand in Canada.
Dan Walton, Yucatan’s Chief Financial Officer stated, “Yucatan Foods is excited to have the financial strength and experience of Harvest Capital Credit as our new partners. Harvest brought a flexible and patient approach that allowed Yucatan to achieve our financial goals by providing capital for a large scale manufacturing capacity expansion, as well as a smaller internal recapitalization. The transaction was closed according to terms presented by Harvest to Yucatan, and was handled in a professional manner.”
This financing is demonstrative of Harvest’s ability to provide flexible and customized financing solutions tailored to a client’s specific needs by being able to offer: senior secured debt, unitranche term financing, second lien debt, mezzanine capital, convertible notes, and equity co-investment capital. The transaction for Yucatan represents Harvest's 3rd investment in 2016.
Harvest is committed to providing customized financing solutions to various industries across the lower middle market. Additional investment criteria include:
- Private equity sponsored or non-sponsored transactions
- EBITDA of at least $1.5 million
- Hold levels of up to $15 million, with the ability to syndicate larger transaction sizes
- Company domiciled in the United States or Canada
- Strong industry fundamentals
- Defensible competitive advantages
- Sustainable free cash flow generation
- History of profitability and/or demonstrated ability to weather economic weakness
- Proven and experienced management team with aligned incentives
We are committed to being a flexible, value-added financing partner in the lower middle market and look forward to working with your firm. To inquire about our capabilities or discuss a potential financing opportunity, please contact a member of Yucatan’s deal team: