Cannondale Corporation

Client Profile
Cannondale Corporation, a public company (NASDAQ: BIKE), is a leading manufacturer of high performance bicycles and motorsports products. Cannondale’s bicycles and bicycle accessories are sold in the U.S. and in more than 60 foreign countries. Cannondale’s line of off-road motorcycles and four-wheeled sports ATVs (All-Terrain Vehicles) are sold in the U.S and in selected foreign markets.
Situation
Cannondale’s entry into the off-road motorcycle and ATV product category resulted in significant capital expenditures and other start-up related costs. As the costs continued to accumulate, Cannondale needed to quickly source additional capital to complete the build-out of the motorsports products and fund ongoing operations.
Solution
SSG was retained to source a secured term facility and to refinance or restructure the revolving line of credit. By leveraging off of the strength and value of the Cannondale brand, and by demonstrating the significant growth potential in the motorsports category, SSG was able to raise $25,000,000 through the sale of senior notes and warrants. In addition, SSG assisted Cannondale in amending and restructuring its existing $35,000,000 revolving line of credit.