Hunter Street Partners and Five Crowns have provided an $11 million loan to TriStruX, a wireless and telecommunication company. The financing will be used for growth and acquisition opportunities. TriStruX was formed as a result of a merger between Telcom Engineering Group and Leone Electric Company.
MINNEAPOLIS, Nov. 24, 2020 /PRNewswire/ — Hunter Street Partners (“Hunter Street”), a Minneapolis-based alternative investment management firm, and Five Crowns Credit Partners (“Five Crowns”), are increasing their capital commitment to TriStruX, a leading wireless infrastructure and telecommunication service provider in the Northeast, to finance the acquisition of High Point Utilities (“High Point”), a regional broadband network construction and maintenance company.
Hunter Street and Five Crowns Credit Partners will increase the total size of their senior secured term loan to $14.25 million, providing TriStruX the capital required to facilitate the acquisition of High Point and enabling further flexibility for near-term growth. Hunter Street and Five Crowns announced an initial round of financing to TriStruX in June 2020.
TriStruX was formed as a result of a merger in May 2020 between Telcom Engineering Group and Leone Electric Company, a regional competitor. TriStruX is majority-owned and led by CEO Frank Pena and COO Nick Leone.
The add-on acquisition allows TriStruX to add an array of customers in cable TV, fiber optics, and multiple-system operators markets, further diversifying into the broadband segment of the telecommunications industry. High Point leadership will work closely with the senior leadership of TriStruX post-transaction to ensure the effectiveness of the acquisition.
“This acquisition positions TriStruX to serve a broader range of potential clients and add service offerings to key existing clients in the New York City market,” said Andrew Platt, Partner at Hunter Street. “We’re proud to provide capital that will help the company grow to take on additional broadband opportunities throughout the five boroughs of New York City,” said Neal Johnson, CEO and CIO of Hunter Street.
“Expanding TriStruX’s financing will allow it to better develop client relationships and scout out new opportunities,” said Chris Taylor, Managing Director at Five Crowns.
“TriStruX has plans to accelerate its growth in its current markets and will continue to evaluate opportunities to expand its business,” said Mr. Pena. “With our new capabilities, TriStruX plans to aggressively pursue opportunities throughout the New York City area, and to take on additional projects,” Mr. Leone said.
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.