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CV Holdings

Based in Albany, NY with manufacturing plants in Auburn, AL and Strasbourg, France, CV Holdings is a developer and manufacturer of customized, application-specific, high performance packaging products. The Company holds over 250 U.S. and international patents and filed applications. Its customers are primarily Fortune 50 companies, including leading multinational pharmaceutical and food manufacturers.

CV Holdings embodies the kind of long-standing client relationship that Iroquois Capital Group’s investment bankers have developed over their careers. In 1996 Linda Costello first met CV Holdings’ founder and major shareholder when her firm, J.C. Bradford, was engaged to raise a mezzanine round of financing to fund the growth of some of the Company’s packaging products. In 2005, she collaborated again with CV Holdings in an assignment to raise junior debt capital to fund the Company’s revolutionary new packaging for blood glucose test strips. There was extensive interest in the opportunity from mainstream institutional investors, and the resulting notes carried a fixed interest rate and were junior to the Company’s bank financing. CV Holdings was able to avoid further dilution to its equity holders, because the mezzanine financing was not accompanied by warrants, a typical feature of such quasi-equity financings.

In mid-2006, the Company again engaged Ms. Costello to explore the possibility of optimizing its debt capital. Because CV Holdings had grown EBITDA by approximately 70% from 2005 to 2006, the Company believed it might be able to replace its relatively expensive junior debt financing with more attractively priced senior debt. In September of 2006, CV Holdings closed a $45 million financing consisting of a new $35 million senior debt facility and a restructuring and repricing of the subordinated notes originally issued the year before. Based on CV Holdings’ growth and improved credit quality, Ms. Costello identified the non-bank senior lender and negotiated with the mezzanine lenders to reduce their interest rate.

In 2012, having achieved impressive growth in both revenue and EBITDA, CV Holdings again hired Ms. Costello and Iroquois to refinance its existing senior and mezzanine debt with an attractive new loan.

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