NORWOOD, N.J. — EmpireCLS Worldwide Services recently received a $10 million investment from Praesidian Capital, a provider of mezzanine capital for small and mid-sized companies nationwide.
“We are delighted to have Praesidian Capital as an investment partner in EmpireCLS,” said David Seelinger, Chairman and CEO of EmpireCLS in a statement. “Praesidian is a long-term investor who appreciates EmpireCLS’ position within the industry and our growth opportunity ahead. Their commitment to our company is a testament to dedication and talent of our employees who are the backbone of our industry leading service.”
Mezzanine capital is a form of financing that is part debt and part equity. It incorporates equity-based options, such as warrants, with a lower-priority debt to provide flexible long term capital for use in buy-outs or growth financings. Frequently unsecured, it usually bears interest at a higher rate than secured loans and often gives the lender a stake in the equity of the company. Mezzanine debt is often used to finance acquisitions, buyouts, and accelerated growth. Its repayment profile is often back-ended over a five- to seven-year period.
In a follow up e-mail, Seelinger wrote: “I did not give up ownership. This is a limited partnership for expansion purposes. Our limited partner does not have a role in the company.”
Neil Marks, managing partner at Praesidian Capital, said in a statement: “EmpireCLS has established itself as a premier brand within the industry due to the core strengths of people, technology, systems, service logistics and fleet quality.”
Empire CLS this year converted the last of its 734-vehicle fleet to company-owned/employee driven. It ranked third overall in fleet size among U.S. operators.
About EmpireCLS: EmpireCLS is one of the largest chauffeured transportation companies in the world, operating in more than 650 cities. For more information, CLICK HERE, and also see Seelinger give a video pop-up introduction to his company.
About Praesidian Capital Investors: Praesidian Capital partners with small and mid-sized businesses, providing private mezzanine capital. Praesidian invests in established, historically profitable companies often in connection with a management/leveraged buyout, recapitalization or refinancing. Based in New York City, Praesidian manages more than $400 million in committed capital. For more information, CLICK HERE to visit the company’s website.
Sources: EmpireCLS; LCT Magazine; www.attractcapital.com