secured

Capstone Headwaters Advised ResinTech, Inc. on the Placement of Debt Financing for a New Manufacturing Campus

February 2019

Denver, CO – Capstone Headwaters advised ResinTech, Inc. (“ResinTech” or the “Company”) on the successful placement of $116.7 million in debt financing commitments, the proceeds of which will be used to facilitate the construction of a new manufacturing campus in Camden, NJ (the “Camden Project”) that will consolidate and relocate the Company’s current operations.

The debt facilities included an $81.7 million senior secured credit facility, led by Fulton Bank of New Jersey, and a $35.0 million second-lien term loan facility led by an unnamed junior lender.  Participants to the senior credit facility included Provident Bank, Sterling National Bank, and M&T Bank.  The Camden Project was also supported by $138.8 million of Grow NJ state tax credits, various other state and federal incentives, and equity contributed by the ownership group.  The transaction closed on January 29, 2019, and the terms of the financings were not disclosed.

“ResinTech and the Camden Project financing received significant interest from prospective lenders in the market who were generally attracted to the stable demand and recession-resistant nature of the water filtration end market, the consistency and stability of ResinTech’s financial performance and customer relationships, and the strength of the underlying collateral and project finance structure” said Kent Brown, Managing Director at Capstone Headwaters in their Debt Advisory Group.  “The financing will help take the Company to the next level of success and we are delighted to have played a role in helping them develop the project and bring hundreds of new jobs to the City of Camden.”

Based in West Berlin, NJ, ResinTech is comprised of several business units that together manufacture and distribute a broad range of water filtration consumable products, equipment, and related services, including ion exchange resins, activated carbon, filtration cartridges and systems, resin regeneration services and equipment, and water softening equipment and consumables.  The Company expects to realize significant benefits from the Camden Project, including the development of new and expanded product and service lines, direct expense savings and enhanced production efficiencies, among others.

The financing for ResinTech represents the eighth successful advisory assignment in the water sector for Capstone Headwaters. "This is a strong example of our ability to provide solutions on complex transactions while working cohesively to bring both industry and product expertise to bear, " commented Samrat Karnik, Managing Director and Co-Head of the Industrial Technology group, who worked in collaboration with Kent Brown and the Debt Advisory Group on this transaction.