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Amteck - Fueling Organic Growth and Acquisitions through Multiple Loan Structures

Amteck has been recapitalized by CIBC & Tennenbaum Capital Partners

“The FocalPoint team helped identify lenders with deep industry knowledge and experience, and was able to deliver a structure that allows us to continue implementing our organic growth and acquisition strategy.”

Daren Turner, CEO, Amteck


Amteck obtained a $7,500,000 revolver loan, a $51,000,000 term loan, and a $15,000,000 acquisition loan from CIBC and Tennenbaum Capital Partners.

Deal Challenges

Amteck is a project-based business with progress billings, and the Company had a history of customer concentration greater than 50% with its top three customers. Additionally, lenders struggled to support the uses of the transaction, which included a dividend to the sponsor equal to their principal investment in the Company, as well as a partial repayment of the seller note.


FocalPoint positioned the Amteck story  with an emphasis on its high-margin, recurring services and technologies business. This not only got lenders more comfortable with the nature of the revenue, but also illustrated the Company’s ability to maintain revenue during an economic downturn. Of the seven final term sheets received, and after several rounds of negotiation, FocalPoint was able to narrow the interested lenders to the three most attractive final term sheets. To ensure Amteck would be able to meet ongoing liquidity requirements, FocalPoint worked with the Company to carefully model a number of proposed structures analyzing factors such as pricing, amortization, fees, diligence required to close, likelihood of closing, treatment of seller note interest payments and covenants. Amteck ultimately decided to partner with Tennenbaum Capital Partners due to the lender’s willingness and flexibility to finance the recapitalization and support the Company’s growth strategy with a sizeable acquisition line.