Polar Corp.

Leading Independent Bottler Recapitalizes to Buy Out A Minority ShareHolder

Polar Corp. is a leading bottler of proprietary brand and private label soft drinks and spring water headquartered in Worcester, Massachusetts. In 2011, having just completed a sizeable acquisition of another bottling facility, the fourth-generation, family-owned business faced a new challenge: recapitalizing the balance sheet so that it could buy out a minority shareholder and subordinated debt lender who had reached its intended investment time horizon.

Polar turned to Prudential Capital Group, which had provided junior capital to the company 10 years earlier and was well-positioned to undertake the necessary due diligence on short notice. In two months, Prudential Capital structured and closed a new junior capital investment in Polar that included senior subordinated notes and preferred equity. At the request of Polar, Prudential Capital also invited a long-time Polar investor to contribute to the deal on a pro-rata basis. Concurrent with this transaction, Polar also closed a senior credit facility with its existing senior lender.

In a fluid situation in which Polar placed a premium on speed and certainty of execution, it chose to work with Prudential Capital for its long-term understanding of the company, its ready access to capital, and its ability to underwrite and fund two different junior capital tranches at a time when Polar was making material changes to both its balance sheet and its scale of operations.