TORONTO--(BUSINESS WIRE)--Third Eye Capital ("TEC" or the "Company"), Canada’s leading provider of asset-based financing solutions to companies that are underserved or overlooked by traditional sources of capital, is pleased to announce the successful exit of its debt and equity holdings in Cricket Energy Holdings Inc. (“Cricket”). This follows the strategic majority sale of Cricket’s subsidiary, Provident Energy Management Inc. (“Provident”), to funds managed by Northleaf Capital Partners. Financial details and terms of the transaction were not disclosed.
In December 2020, TEC provided approximately $150 Million to back the management buyout of Cricket. Following the investment, Cricket re-aligned its business to focus on becoming the leading provider of sub-metering and building automation services to multi-residential buildings. TEC’s investment was structured as a form of asset-based financing, including senior secured term, revolver, and bridge loan facilities, that enabled Cricket to roll interest charges into the principal, delaying repayment until the sale of assets in the future. This allowed Cricket to channel its cash flows back into bolstering growth in its core businesses.
“Third Eye has been an exceptional partner and supported us through our transition as we strengthened our position in the new construction, multi-residential sub-metering market,” said Marco Pisterzi, COO/CFO at Cricket and Provident. “We are grateful for their investment and strategic guidance as we executed our plans.”
“Provident is an impressive energy management platform that has grown significantly in recent years,” said Arif Bhalwani, CEO at Third Eye Capital. “It has been a pleasure to work with the owners and senior leadership team and we wish them continued success in the years ahead.”
The successful exit not only surpassed TEC’s return and timing expectations but also led to the repayment of certain loans made by the Company to support the working capital of OZZ Electric Inc., Canada's largest multi-residential electrical contractor, and a long-term strategic partner of Cricket and Provident.
“We are thrilled that we’ve been able to successfully execute on our plans and provide a great outcome to Provident and its customers, employees, and stakeholders,” added Steven Muzzo, founder and CEO of both Provident and OZZ. “Third Eye really understands our business and appreciates the synergistic power of OZZ’s deep industry relationships and 1,200 dedicated employees across Canada and the U.S. We look forward to working with them again in the future as we spin-out new sustainable businesses in the electrical energy space.”
About Third Eye Capital
Third Eye Capital is one of Canada's largest and most experienced private debt firms, specializing in providing capital solutions to companies that are underserved or overlooked by traditional sources of financing, primarily banks. The firm's strategic approach to asset-based financing empowers businesses to thrive and accelerate growth in their core operations. From navigating through periods of extreme distress to embracing moments of extraordinary change, Third Eye Capital excels at executing opportunities that other lenders simply cannot or will not pursue. For more information see www.thirdeyecapital.com.