Innovative Concepts in Entertainment (ICE), Buffalo, New York

The founder and C.E.O. of this Buffalo, NY–based innovator, manufacturer and distributor of coin-operated amusement games utilized F.N.B. Capital Corporation to provide the funding necessary to repurchase majority ownership of the company.

Actions

• F.N.B. Capital Corporation’s financing provided an effective transition of ownership through the use of a mezzanine loan, which served as temporary capital with a three to five year horizon.  This alternative was less costly for Innovative Concepts than an equity partner who would continuously share future profits.
• The funding provided by F.N.B. Capital, coupled with traditional lending from a banking partner, created the necessary capital for the founding partner and current management team to regain majority ownership and control by purchasing stock that was owned by a private equity investor.
• F.N.B. Capital was able to work with the management team and other various stakeholders to close the management buyout in less than ninety days, despite a relatively complex process.

  
Results

• Innovative Concept’s management team has regained independence and ownership of the business while having continued access to F.N.B. Capital’s strategic, tactical and financial assistance.
• While working with F.N.B. Capital, the Innovative Concept’s management team has successfully executed several cost-reducing initiatives and invested more in research and development.
• Innovative Concepts continues to be a leader in the innovation, manufacturing and distribution of coin-operated amusement games, redemption games, skill games and other amusement games.
• F.N.B. Capital successfully exited the investment in November of 2010 when Innovative Concepts, because of profitable operations and decreased leverage, was able to recapitalize the business with traditional senior financing.