Tennenbaum Capital Partners provided Soundcloud, the music sharing website, with $35 million in debt funding. Soundcloud was also given the option to borrow another $70 million through convertible bonds, if necessary. Tennenbaum Capital Partners is an American alternative investment firm that specializes in both performing credit and special situations. Previously, Soundcloud received $60 million Series D round funding from Index Venture Partners and Chernin Group at a $700 million valuation. This investment came in January of 2014. Soundcloud had a very strong user base and has recently pursued several different growth options which look to increase the company’s revenue.

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.

Tennenbaum Capital Partners provides $35 Million to Soundcloud

What We Offer

Latest M&A Industry Updates!

Get a Free Consultation!