Brightwood and PhenixFIN Provide Senior Secured Credit Facility and Preferred Equity Facility to Support the Refinancing of MB Precision Investment Holdings LLC

Brightwood Capital Advisors, LLC (“Brightwood”), a private credit firm, and PhenixFIN Corporation (“PhenixFIN”), a publicly traded business development company (NASDAQ: PFX), today announced that they have partnered with Insight Equity (“Insight”) to provide a senior secured credit facility and preferred equity facility to support the refinancing of MB Precision Investment Holdings LLC (“Precision” or the “Company”) d/b/a Midstate Machine. Jim Ashton, former Chairman of the Board and CEO of Precision Partners, will be joining the Company’s Board of Directors as part of this transaction. The financial terms of the transaction were not disclosed.

Precision is a provider of high-precision components and assemblies for the aerospace, defense, and industrial sectors, with manufacturing facilities located in Winslow, ME, Cincinnati, OH, and Phoenix, AZ. The company offers a comprehensive range of engineering services and collaborates closely with clients to deliver tailored, turnkey solutions. With decades of machining expertise and a commitment to superior craftsmanship, Precision is dedicated to producing reliable, mission-critical products that enhance operational efficiency and address the dynamic needs of the industry.

“We are excited to collaborate again with our valued partners at PhenixFIN to support this transaction,” said Scott Porter, Managing Director and Co-Head of Originations at Brightwood. “This refinancing marks an important strategic milestone for Precision, empowering the Company to build on its core platforms and scale its offerings to better serve its clients. This partnership will position Precision to effectively pursue its next phase of growth and long-term success.”

“The combined expertise of Brightwood and PhenixFIN was critical in the success of this transaction, and we are excited about this new partnership,” said Mike Heinold, Chief Financial Officer of the Precision management team. "Their strategic insights and support will be invaluable as we move forward in pursuing our growth objectives."

“Brightwood and PhenixFIN have been exceptionally supportive throughout this process, fully understanding our financial goals and providing valuable counsel and expertise to help us realize our vision for Precision,” said Paul Pesek, Senior Vice President at Insight. “Their combined knowledge of the aerospace, defense, and industrial sectors has been instrumental, and the support from this refinancing will enable the Company to pursue key growth initiatives. We look forward to their continued partnership as we embark on our next chapter.”

“We value our longstanding partnership with Brightwood and are excited to engage with them on another transaction,” said David Lorber, Chairman & Chief Executive Officer at PhenixFIN. “As a flexible capital provider, we are committed to supporting Precision during this pivotal growth inflection point, leveraging our industry experience to contribute to their continued success.”

About Brightwood Capital Advisors

Brightwood Capital Advisors, LLC is a private credit firm with a long-standing track record of investing in middle-market businesses. Brightwood specializes in providing senior debt capital primarily to U.S. businesses with $5-$75 million of EBITDA within five core industries: technology & telecommunications, healthcare, business services, transportation & logistics and franchising. Brightwood partners with non-sponsored businesses as well as private equity sponsors to provide customized financing solutions for directly originated investments.

Founded in 2010, Brightwood is a minority-owned firm with a team of over 50 employees who manage approximately $6 billion of assets on behalf of its primarily institutional investor base (as of June 30, 2024). Brightwood is headquartered in New York City. For more information, please visit: https://brightwoodlp.com/.

About PhenixFIN

PhenixFIN Corporation (NASDAQ: PFX) is an internally managed, closed-end, business development company (“BDC”). PhenixFIN’s management has a broad network of relationships and deep expertise in originating, structuring, executing and managing credit and equity investments. Our portfolio generally consists of senior secured first lien loans, senior secured second lien loans, and equity. PhenixFIN is headquartered in New York City.

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