In an era characterized by regional banking conservatism and unpredictable public debt markets, private credit has evolved into the cornerstone of middle-market leveraged finance. Pinnacle Private Credit originates, underwrites, and holds senior secured loans that give sponsors and business owners absolute certainty of execution, covenant flexibility, and speed.
Unlike syndicated bank loans that require months of marketing, roadshows, and flex terms, our direct private credit facilities are underwritten entirely against our balance sheet and managed funds. Borrowers negotiate directly with decision-makers who understand enterprise value, cash flow timing, and operational nuance.
The Architecture of Unitranche Financing
Traditional debt financing often forced borrowers to negotiate simultaneously with two or three distinct financial institutions: a senior commercial bank for a revolving line and term loan, and a junior mezzanine fund for subordinated notes. This bipartite model created painful intercreditor agreements, competing covenant tests, and catastrophic gridlock during periods of market stress.
Pinnacle's unitranche facility combines senior and junior tranches into a single, unified credit agreement:
- Single Credit Agreement: Eliminates the costly legal expense and delays of negotiating intercreditor agreements between senior banks and junior lenders.
- Blended Competitive Pricing: Delivers higher overall leverage multiples (often up to 4.5x–5.0x EBITDA) at an attractive blended floating interest rate.
- Delayed Draw Term Loans (DDTL): Pre-approved accordion facilities committed upfront to finance follow-on bolt-on acquisitions without restructuring the base loan.
- Flexible Amortization: Typical annual principal amortization ranges from nominal 1.0% up to 5.0%, preserving operational free cash flow for reinvestment.
Underwriting Criteria & Target Parameters
| Parameter | Underwriting Target | Notes & Flexibility |
|---|---|---|
| Facility Size | $5,000,000 to $50,000,000 | Co-investment syndication available for facilities up to $100M |
| Borrower Revenue | $15,000,000 to $250,000,000 | Established commercial business model with multi-year operating history |
| EBITDA Threshold | $3,000,000+ | Normalized pro-forma EBITDA after verified non-recurring add-backs |
| Collateral Lien | First-Lien Senior Secured | All enterprise assets, IP, receivables, and equity pledge |
| Base Rate Index | 1-Month or 3-Month CME Term SOFR | Typically accompanied by a 1.0% to 2.0% SOFR floor |
| Closing Timeline | 21 to 30 Calendar Days | Fast-track diligence protocol upon receipt of quality-of-earnings report |
Representative Use of Proceeds
Pinnacle's Private Credit facilities are designed to fund complex, high-stakes financial transactions, including:
- Leveraged Buyouts (LBOs): Partnering with independent private equity sponsors to finance control acquisitions of market-leading mid-cap platforms.
- Refinancing & Bank Takeouts: Replacing rigid bank credit facilities that have stalled company growth due to covenant tightness or regional bank liquidity pullbacks.
- Shareholder Dividend Recapitalizations: Enabling business founders to extract significant liquidity while maintaining operational control and majority equity upside.
- Strategic Add-on Acquisitions: Structuring pre-committed delayed-draw lines that allow portfolio companies to execute rapid roll-up strategies before competitors react.
To discuss a specific transaction with our Direct Lending desk, contact our principals directly at (212) 808 5966 or submit deal parameters via our confidential underwriting portal.