Frontera Investment Raises $10 Million of New Capital
Summary
The proceeds of this credit facility will be used to repay existing, higher interest rate indebtedness and to provide the company with additional lending capacity to grow the gold buying and gold pawn business lines.The second transaction is a $5 million preferred stock investment from MRC Capital Group, an existing investor in Frontera. They mark an important step in our business as we look to leverage the systems we have built over the past nine years to accomplish our mission of providing our customers with products that reduce the cost of basic financial transactions for the un-banked market in the United States.As contemplated in the preferred stock purchase agreement, representatives of MRC Capital Group will occupy three of Fronteras five Board of Director seats with Benjamin Yogel, MRC Capital Groups managing partner, becoming the co-chairman of the Board along with Partida.We are thrilled to expand our existing investment in Frontera, said Benjamin Yogel. We see a clear market opportunity for Frontera to leverage its existing systems by adding new stores through acquisition onto the companys technology platform. Our new equity investment, coupled with Salus new credit facility, will provide the company with the liquidity to accomplish this growth strategy.We are excited to partner with Frontera and its sponsor, MRC Capital Group, said Marc S. Price, SVP, Loan Originations and Corporate Strategy of Salus Capital. As a subsidiary of Harbinger Group, Inc., we seek to align ourselves with companies and sponsors that have a unique business model that differentiates them from the competition.