In 2019, Teichert began exploring an opportunity to acquire an aggregate mining operation adjacent to the Company’s existing operations in Yuba County, California. Given the multi-generational nature of the asset, the management team looked to utilize long-term capital to fund the transaction.
Based in Sacramento, California Teichert is a family-owned and operated construction and building materials company that has been in operations for over 125 years since its founding in 1887.
The relationship between us and Teichert goes back to 1994 when we first became a lender to the company. Over the past 25+ years, we have put together several financings to help fund Teichert’s continued growth and have built a strong relationship with the ownership group and senior management team.
In 2019, Teichert began exploring an opportunity to acquire an aggregate mining operation adjacent to the company’s existing operations in Yuba County, CA. Given the multi-generational nature of the asset, the management team looked to utilize long-term capital to fund the transaction.
Although they considered other private placement lenders and bank term loan facilities, Teichert ultimately chose to work with us, due to our close relationship, ability to provide long-term capital, and deep understanding of the inherent cyclicality involved in the construction and aggregates space.
The acquisition closed in April 2020, during the early stages of the COVID-19 pandemic. While this introduced some complexities into the due diligence process, we were able to provide the Company with a $125 million financing package consisting of an $80 million fixed-rate financing, as well as a $45 million 3-year Pru-Shelf facility.
We are excited for our long-term partnership and honored to have been a part of the acquisition process. We look forward to supporting Teichert’s continued growth.