Low T Growth Equity 2015

Low T Growth Equity 2015

Company Overview

Leading provider of testosterone replacement therapy that operates 45 Low T branded centers in 10 states and is headquartered in Southlake, Texas.

Leading regional provider of banking and financial solutions to commercial and consumer clients.

Situational Overview

Low T has bootstrapped the development of its 26 Company-owned and 19 joint-venture clinics. Mike Sisk wanted to raise capital to accelerate growth and refinance existing debt without a personal guarantee.

The Company had grown rapidly, opening 51 de-novo centers in five years. Start-up losses from new units were masking the stronger performance and positive cash profile of maturing clinics.

BCA believed senior lenders would refinance existing debt and provide growth capital without a personal guarantee once presented comprehensive cohort analysis.

BCA believed that a competitive process and proper positioning of the industry would allow Low T to achieve all senior-level financing due to the Company’s strong and growing internally generated cash flow.

BCA Strategy

Due to the unique nature of the industry, BCA recommended conducting a broad process to achieve the most competitive debt financing and best partner.

BCA helped management prepare for a transaction by creating a clear, consolidating financial model and developing an effective confidential memorandum that highlighted the Company’s leading position in the market, strong underlying cash flow of maturing units and attractive future growth prospects.

BCA contacted a broad array of senior, asset-based and one-step-unitranche lenders.

Transaction Result

After evaluating several alternatives, Low T selected Pinnacle Financial Partners as its financing partner.

Low T successfully secured a term loan to retire existing founder debt and a revolving line of credit to fund the development of additional de novo facilities.

The financing was achieved with improved pricing and covenants and included an accordion feature that allowed the facility to grow as the Company’s financial performance and cash flow increase.

Received Debt Financing from

“We are thrilled to have completed this growth financing with Pinnacle. This capital will allow us to continue our de novo expansion strategy across the U.S. Brentwood Capital was instrumental in developing our financing strategy, preparing the offering materials that effectively articulated the opportunity and growth potential of the business and running a competitive process that enabled us to obtain the most competitive funding and the right partner."

Mike Sisk
CEO, Low T Center