Hunter Street Partners and Five Crowns Credit Partners have provided a $11 million loan to TriStruX, a holding company that has resulted from the merger of Telcom Engineering and Leone Electrical Company. The financing will be used to support TriStruX’s growth.
MINNEAPOLIS, June 23, 2020 — Hunter Street Partners (“Hunter Street”), a Minneapolis-based alternative investment management firm, has partnered with Five Crowns Credit Partners (“Five Crowns”) to provide an $11 million senior secured term loan to finance TriStruX, the holding company resulting from a merger between Telcom Engineering Group and one of its regional competitors Leone Electric Company. The recently combined company is a prominent wireless infrastructure and service provider, majority owned and led by CEO Frank Pena and COO Nick Leone.
Carter Venkat, CFO, in conjunction with the rest of TriStruX’s leadership, has a common vision of the future of the company and its expansion. TriStruX will continue to serve large wireless and telecommunication companies, major cellular tower owners, wireless equipment manufacturers, cable companies, and engineering firms as the company carries out high-quality, timely, and safe infrastructure projects as well as performs on-going maintenance and emergency repair work.
“We’re excited to support the growth of TriStruX and believe strongly in its leadership’s vision,” said Andrew Platt, Partner at Hunter Street. “Along with Five Crowns we identified an off-market opportunity and designed a creative and beneficial financing solution for all parties involved.” Chris Taylor, Managing Director at Five Crowns, added, “we’re confident that the TriStruX team has created an ideal platform to consolidate the communication infrastructure sector, and we’re eager to help them execute on their strategy.”
“The expansion of 5G technology and the fragmented nature of the telecommunication infrastructure industry should allow for the company to capitalize on the positive momentum captured by this merger,” said Neal Johnson, CEO and CIO of Hunter Street. “We look forward to assisting in the success of our new partners.”
“Through the partnership with Hunter Street and Five Crowns, we’re well positioned for organic growth and supported for future inorganic growth,” said Mr. Pena. “We believe the industry is set for consolidation, and we are on the lookout for acquisitions that fit our business model and provide value for our customers.”
“We’re encouraged by the industry tailwinds that have propelled TriStruX, including market catalysts such as network diversification, spectrum scarcity, the internet-of-things, and content delivery networks. With the help and expertise of our partners at Hunter Street and Five Crowns, we’re excited to continue on our journey of increasing scale while providing the highest quality service for our customers,” added Mr. Leone.
The merger of Telcom Engineering Group (founded in 1991) and Leone Electrical Company (founded in 1977) has resulted in expanded offerings to the companies’ existing clients, an increased capacity to take on new projects, and improved operating efficiency through economies of scale.
About Hunter Street Partners
Hunter Street Partners is a Minneapolis-based alternative investment management firm that provides capital solutions to operating partner teams and lower middle market companies across corporate finance, real estate, and specialty finance. The firm is focused on fundamentals-driven, asset-oriented credit and equity opportunities. Learn more about Hunter Street Partners at www.hunterst.com.
About Five Crowns Credit Partners
Five Crowns, a Newport Beach-based investment firm, was founded in 2003 to make value-driven equity investments in lower middle market businesses with an opportunistic approach. Driven by compelling market opportunities, the firm expanded into credit in 2016 to provide flexible and creative financing solutions for acquisitions, shareholder buyouts, dividend recaps, and various growth initiatives.