Estudios de caso
J.S. Held adquiere GLI Advisors para fortalecer sus servicios de apoyo a proyectos de construcción en el oeste de EE. UU. y Hawái
LEER MÁSOne of the leading, fully integrated Manufacturers of Vinyl and Aluminum Windows, Doors, Screens, and Related Products. The Company services the residential and commercial markets throughout the United States, with manufacturing facilities in the US and Mexico.
After several years of significant growth and profitability tied to the robust housing market, revenue began to decline following the housing bubble burst. Net sales declined 18.5% from 2007 to 2008, largely due to the economic downturn and softness in new construction sectors, and were projected to decline by a further 30% in 2009. In response to the dramatic contraction in the business, the Company began implementing numerous cost-saving initiatives, primarily through plant closings, inventory reductions, and headcount reductions. Despite its efforts, the Company defaulted on its existing loan agreements with its Senior Lenders and Note Holders in 2008.
In addition to managing the business through the difficult business climate, the Company was faced with having to negotiate a longer term Forbearance Agreement with both its Senior Lenders and the Note Holders, while at the same time trying to obtain new financing from a new bank syndicate group in one of the most challenging credit markets. These efforts cost the Company valuable time and added significant strain to relationships with its Senior Lenders and Note Holders, who were owed $45.0 million and $28.0 million, respectively. Lacking the resources and expertise to effectuate a successful Company-driven solution, the Senior Lender required the Company to engage an outside financial advisor to assist the Company with financial forecasting, the negotiation of the Forbearance Agreement, and the overall refinancing and restructuring process.
Our experts were engaged as the Financial Restructuring Advisor to assist the Company with the negotiation of the Forbearance Agreement and the overall refinancing and restructuring process. Our team, with the assistance of the Company's senior management and outside counsel, took control of the negotiations with Senior Lenders and the Note Holders, quickly securing the needed extension of the Forbearance Agreement with both parties and providing the time to focus on the completion of the refinancing process with its new proposed $100.0 million syndicated facility.
We developed a series of new revised GAAP projections for 2009 and a detailed consolidating cash flow model for each of the seven (7) revenue generating business segments in order to (i) enable the Company to both project and validate opening availability with the required minimum collateral requirements; (ii) provide the Company with the financial model to operate under the reporting requirements of the new $70.0 million revolver and $30.0 million term loan, and (iii) demonstrate adequate intra-month availability on a weekly basis and adequate monthly availability on a going forward basis in order for the Company to operate under its revised 2009 budget. In addition, we managed relationships with the existing Senior Lenders and Note Holders by preparing (in collaboration with the client) and providing the information required to demonstrate adequate availability under the extended Forbearance Agreement negotiated by our experts.
Despite the Company's continued revenue declines, losses, and the lingering softness in the housing market, our efforts led to the Company completing a $100.0 million transaction that successfully restructured its capital structure and overall balance sheet. The transaction consisted of a new $70.0 million revolving credit facility secured by the Company's receivables and inventory, a new $30.0 million term loan secured by the Company's real estate and equipment, and the payoff of the Company's existing revolver and note holder debt and the payment of associated fees and expenses.
This complex financing structure not only provided the Company with substantial new working capital and availability at closing, but also enabled it to enhance and preserve the Company's value and better position it for future growth.
Brian F. Gleason, CTP
Director ejecutivo sénior
Práctica de Asesoría Estratégica
+1 610 659 8118
[email protected]
> Servicios de recuperación y reestructuración
Superar los numerosos desafíos que enfrenta una empresa en transición requiere un enfoque operativo que vaya más allá del balance. Este enfoque tiene como objetivo evitar una mayor caída y crear un camino hacia el crecimiento sostenible. Basándonos en décadas de experiencia en el ámbito de la recuperación, ayudamos a las empresas en transición a identificar estrategias prácticas para mejorar la rentabilidad y la liquidez para lograr un alivio inmediato, al mismo tiempo que desarrollamos y ejecutamos un plan de recuperación integral para la creación de valor sostenible a largo plazo.
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