DETROIT, Mich. (WLUC) - Arctaris Michigan Partners, LLC (“Arctaris”), a middle market debt firm, is proud to announce the execution of a loan facility totaling $3.0M for U.P. Paper, LLC (“UPP” or the “Company”). This transaction represents the eighth investment for Arctaris’ Michigan fund, which was formed to provide growth capital to Michigan businesses.
Commencing operations in 1920 as a newsprint mill, U.P. Paper has evolved with the dynamics of the paper industry and changed ownership several times in its history. Currently, UPP uses 100% recycled wastepaper to produce Kraft Paper for various packaging solutions. In October 2015, Stan Zeller purchased the facility and land surrounding the paper mill. Mr. Zeller built a strong management team and developed a strategy to be a regional cost leader in the Kraft paper industry.
In 2016, UPP re-opened the paper mill and has again become an important part of Manistique, Michigan’s economy. In its first seven months of operations, UPP has rebuilt a robust customer base with more than 68 unique customers. Given UPP’s solid growth and increasing demand for its core product line, Arctaris’ capital investment will help create over 20 skilled manufacturing jobs over five years. This debt investment is representative of Arctaris Michigan’s commitment to provide non-dilutive growth capital loans for manufacturers and other companies that can use the capital to create jobs and increase profits.
Lars Dannberg, CEO of UPP said, “While our rapid growth was beneficial to both our team and community, it created a capital shortfall that Arctaris helped to overcome. Further, their team continues to work with us on our growth objectives and operational goals.”
Jason Sanders, Managing Director and Business Development Partner of Arctaris, stated, “UP Paper’s ownership has a compelling vision for the business, which began with the formation of a world class management team. We are delighted to help restore this economic development driver in Michigan’s Upper Peninsula and are encouraged by its prospective growth potential.”
In addition to the UPP’s investment, Arctaris has placed capital in other Michigan companies that include Moguldom Media Group, Advanced Technology Automotive Company, VLF Automotive, and AFCO Manufacturing.
About Arctaris Michigan Partners
Arctaris launched the Michigan Income and Principal-Protected Growth Fund, LP (the “Michigan Fund”) in 2013 in partnership with the State of Michigan to provide growth debt to local businesses otherwise underserved by prevailing credit markets. The Michigan Strategic Fund is one of the Michigan Fund’s key investors and has partnered with Arctaris to increase capital availability and create jobs in the state. Michigan’s investment comes out of its $79M allocation from the $1.5B State Small Business Credit Initiative, which is managed by the U.S. Department of the Treasury to support job creation by addressing the capital void small businesses.