Structuring appropriate debt financing for rapidly expanding business
Movida Communications, founded in 2005, was a wireless service provider offering pay-as-you-go wireless voice and data communications services. It was the nation’s first and largest mobile virtual network operator committed to delivering culturally relevant products and services to the Hispanic communities. Movida Communications offered its services through a vast network of independent as well as national retailers.
Falcon recognized that the company’s value was being masked by its negative earnings and instead focused on its large and fast growing high quality customer base as an indicator of value. Falcon structured and led an investment in senior subordinated convertible notes that capitalized on the strategic value of the company’s customer base and provided the company with growth capital designed to help it reach break-even.