Financing TNR Entertainment Corporation's Growth

Transaction

• TNR Entertainment Corp. ("TNR") is a Texas based provider of DVD rentals to value oriented consumers, primarily in grocery stores, via in-store kiosks
• TNR, a portfolio company of Celerity Partners, a Los Angeles based private equity firm, was seeking to raise equity financing to support its growth

Challenges

• Hurdles in consummating a transaction included:
  • The company was founded in 2002 and had a limited operating history
  • The company needed to move quickly in order to capitalize on market opportunities
  • The sponsor wanted to maximize the valuation and identify a long term financial partner

Solution

• FocalPoint targeted a select group of financing sources within in the hedge fund community that possessed the ability to move quickly
• Ultimately, the company received an investment from an establish New York based hedge fund at an attractive valuation
• From term sheet to closing, FocalPoint consummated the transaction in less than four weeks