New PortCo - Credit Cards?
Hey all -
I recently started a fund and acquired / launched our first industry platform. Operations question. How do your portfolio companies manage credit cards post-closing?
At closing, the Company is under a new entity with new tax ID, etc., so we are finding that credit card providers are reluctant to roll over credit cards into NewCo without a personal guarantee. Issue being there isn't a technical track record with the new company, so not straightforward for a provider to underwrite a credit card.
One option we looked into is an officer taking on the PG, but having a side letter between them and NewCo to "transfer" the liability.
Are there other workarounds? Or PE-friendly credit cards?
Look forward to hearing your thoughts.
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