Atlanta-based SunTrust Banks (NYSE: STI), one of the largest banks in the U.S., frequently calls on Arnall Golden Gregory to handle the legal aspects of its M&A financings. Two deals involving loans made to private equity funds illustrate how Arnall Golden Gregory’s expertise helped produce excellent results for all involved.
In one acquisition, SunTrust loaned $36 million to a private equity firm to facilitate the acquisition of a Georgia lighting company. In the deal, there were two sets of shareholders: another private equity firm and the founder of the lighting company, who retained a small equity stake in the purchase. The deal was complex because the financing and the acquisition had to close concurrently and were preceded by sophisticated, intense negotiations. In the second transaction, Arnall Golden Gregory represented SunTrust Bank in connection with supplying $20 million of senior secured debt financing to a private equity firm to facilitate its leveraged buyout of a luxury boat maker. Proceeds of the loan were used to consummate the acquisition, refinance existing indebtedness, and provide working capital to the operating company. Completing the deal required intensive intercreditor negotiations related to the target company’s existing showroom and inventory financing arrangements.
SunTrust’s participation in the two acquisitions helped the private equity firms realize their investment goals, and Arnall Golden Gregory’s participation as legal adviser to SunTrust smoothed the way for successful, on-time closings.