Teamwork' Growth' Success'

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Teamwork. Growth. Success.
3030 Market Tower 10 West Market
Street Indianapolis, IN 46204 317-237-2323
Fax [phone]
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Centerfield Capital Partners

• Goal Centerfield targets investments in
  private middle market companies.
  Specifically, we finance
• Growth
• Acquisitions
• The launch of new products
• Entry into new markets
• Changes in company ownership
• Liquidity to owners and operators
• Industry Focus Business services,
  manufacturing and distribution, healthcare,
  information technologies and communications
• Available Capital 57 million
• Size of Investment 1 to 3.5 million. We
  co-invest with other firms to finance larger
  transactions.
• Types of Investment Mezzanine and equity
  investments representing both minority and
  majority ownership positions
• Geography Primarily the Midwest

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Mezzanine Financing An Introduction

• Definition Source of financing designed to fill
  the gap between the amount the senior lender will
  provide and the amount of equity capital the
  principals are able or willing to commit.
  Occupies a position in the corporate capital
  structure between the senior debt and the common
  equity
• Typical Transactions Expansion financing, growth
  capital, management buyouts, recapatilizations
• Investment Type Subordinated debt, Subordinated
  debt with warrants, Preferred stock or a
  combination
• Investment Duration 5-7 years typically
  non-amortized
• Alternatives Cheaper form of capital than
  equity. Not as dilutive to equity ownership

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Mezzanine Financing The Criteria

• What kind of companies are ideal candidates for
  mezzanine financing?
• Financial Strength
• Stable positive cash flows
• Demonstrated ability to maintain acceptable
  margins even in economic downturns
• Room for additional leverage in the new capital
  structure. If a buyout, management and buyer
  should have sufficient equity investment
• Operational Strength
• Strong, proven operating management at key levels
• Products not subject to rapid technological
  change
• Proprietary products and processes with strong
  market position

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Operating Model
EBITDA multiple of Capital Structure Typica
l Senior Term Loan 2-3x Mezzanine 1-2x Tota
l Debt 3-5x Common Equity 1-2x Total
Capitalization 4-7x