"Battery Solutions, LLC serves environmentally conscious corporations, governments, municipalities, and households across the country. We provide cost effective fully-managed battery-recycling kits, systems, and bulk recycling. We accept and recycle all battery chemistries and offer an array of handling services to satisfy our customers’ needs while fully complying with government regulations". From LinkedIn Profile.
BDC Credit Reporter View
Battery Solutions is a major recycler, which is principally owned by PE Group Alston Capital since 2013. At the time of the acquisition- from another PE Group-the only BDC involved in the Company-Alcentra Capital-provided $10mn Subordinated Debt and equity, equally split. However, over the years, the total cost of the investment has been reduced to closer to $7mn. Not clear if there was a re-purchase of a portion of the equity or a write-down by Alcentra. However, there was a restructuring of the Subordinated Debt in the IIQ of 2015 where $3.7mn of debt was converted to Class E common units, with an 8% PIK component, alongside a $1.0mn in Class A common. In the IIQ of 2016 the remaining $2.2mn in Subordinated Debt had its maturity extended from 2018 maturity to 2021, and pays 6% cash and 8% PIK. As of the IIIQ of 2016, the Subordinated and Class E equity was carried at par, but the Class A was written down by three-quarters. Given three consecutive quarters of increasing Common stock write-downs; the extension of the debt maturity; and the low cash rate, the BDC Credit Reporter assumed the Company was under-performing and rated the Corporate Credit a 3, with a negative trend. However, there was an increase in the Class A equity in the IVQ 2016 and a return to par value in the IQ 2017. As a result, Company was upgraded to CCR 2 or Performing. [Updated May 7, 2017]