Business
Frontera Investment Raises $10 Million of New Capital
Frontera Investment Raises $10 Million of New Capital.
About this update from Frontera Investment Inc
[{"type":"text","content":"June 19, 2012 – Frontera Investment, Inc., (www.fronterainvestment.com) (OTC: FRNV) today announced it has entered into two separate investment transactions which together will provide the company $10 million of new capital funding with which to grow its business. Frontera is an alternative financial services company that serves the large and fast-growing low-cost consumer finance market. The company uses advanced technology and business processes to offer competitive prices on a wide range of financial products and services, including check cashing, loans (payday and gold jewelry loans) and money transfers.The first transaction is a new $5 million senior credit facility from Salus Capital Partners (www.saluscapital.com). The proceeds of this credit facility will be used to repay existing, higher interest rate indebtedness and to provide the company with additional lending capacity to grow the gold buying and gold pawn business lines. The second transaction is a $5.0 million preferred stock investment from MRC Capital Group (www.mrccapital.com), an existing investor in Frontera. The proceeds of this equity investment will be used to repay existing indebtedness and to finance growth in Frontera’s core business through a series of new store acquisitions. “We are very pleased to announce these two transactions,” said Gilbert Partida, Frontera’s president and CEO. “They mark an important step in our business as we look to leverage the systems we have built over the past nine years to accomplish our mission of providing our customers with products that reduce the cost of basic financial transactions for the un-banked market in the United States.” As contemplated in the preferred stock purchase agreement, representatives of MRC Capital Group will occupy three of Frontera’s five Board of Director seats with Benjamin Yogel, MRC Capital Group’s Managing Partner, becoming the Co-Chairman of the Board along with Gilbert Partida. “We are thrilled to expand our existing investment in Frontera,” said Benjamin Yogel. “Two years ago we made an initial investment in the company and have been impressed with the company and its management team during the tenure of our investment. We see a clear market opportunity for Frontera to leverage its ex...