MB Financial Bank Recapitalizes Bastech LLC

CHICAGO (February 28, 2019) –MB Business Capital, a division of MB Financial Bank, N.A., announced it acted as sole lender and administrative agent on the funding of a $10,995,000 senior credit facility to Jacksonville, Florida -based Bastech, LLC (“Bastech” or the “Company”).  Founded in 1962, Bastech, is a manufacturer of specialty chemicals to the pulp, paper, and phosphate mining industries. Bastech’s products are used as additives where they are used in deresinating, digesting, defoaming, and flotation processes to enhance plant output and productivity. Bastech is a portfolio company of C3 Capital and Cave Creek Capital Management. MB’s credit facility was used to refinance senior indebtedness and to fund working capital needs going forward. 

C3 Capital is a fund management company based in Kansas City, with a satellite office in Phoenix.  C3 currently manages three funds (C3 Capital Partners, L.P., C3 Capital Partners II, L.P. and C3 Capital Partners III, L.P.), with approximately $460 million in assets that provide capital for businesses to finance later stage growth, strategic acquisitions, ownership transitions, and recapitalizations. The funds make $2-15 million investments in the form of subordinated debt or preferred equity in established businesses with a history of profitability. All three funds are licensed as Small Business Investment Companies. The General Partner of each fund renders all investment advisory services to the funds from their offices in Mission Woods, KS.

Cave Creek Capital Management (CCCM), located in Phoenix, Arizona, seeks out industry leaders who can leverage their investment into higher growth and stronger competitive positions. Their investments are structured to align with management and other shareholders over the long term. CCCM’s typical portfolio company has annual sales of $15 million to $50 million and is growing rapidly in a fragmented market. CCCM funds both growth and liquidity, often in conjunction with modest leverage. They will occasionally invest both debt and equity themselves to close more quickly or to meet certain return or dilution requirements for owners.

 “We welcome Bastech to MB and are happy to facilitate another funding for our valued key partners: C3 and Cave Creek Capital. We took the time to understand Bastech’s specialized business and growth opportunities.” said Michael Sharkey, President of MB Business Capital.