Lampert Capital Markets Case Studies
Successful Restructuring
  • Background

Acme Lift Company, LLC ("Acme" or the "Company") is the nation's primary wholesale renter of late-model, large capacity aerial work platform equipment ("AWP"), boom trucks and other equipment to the local retail equipment rental markets in the U.S. and Canada. Acme is the only national company providing equipment rental companies with just-in-time access to large (80' and taller) AWPs, typically the most capital intensive segment of the equipment rental industry, on a short-term rental basis.

  • Financing Challenge

After a period of rapid growth and profitable expansion, Acme faced the economic contraction of 2008 and 2009 with a series of challenges:

  • An overleveraged balance sheet incapable of being serviced at the existing

level of operation

  • Limited capital resources available to support participation in an industry upturn
  • Burdensome servicing requirements that strained the Company's resources
  • A complex debt structure comprised of multiple lending parties each possessing

varied loan agreements.

  • Solution
  • Successfully negotiated debt restructuring agreements with all significant lenders.
  • Established a merchant banking partnership to invest $15 million in newly issued

equity securities.

  • Created a new credit facility with substantially reduced amortization requirements

and capacity for additional drawdowns to fund equipment acquisitions in the future.

  • Arranged for a non-amortizing 2nd Lien TL to further reduce servicing requirements

and expand the capital base to support future expansion.

  • Result
  • Reduction in debt service requirements by nearly 66%
  • Reduction in interest costs by 50%
  • Immediately available funding for fleet reconstitution and acquisition, geographic

and product line expansion.

  • Renewed ability to address rental clients' needs for short-term rentals that fill in

their own product line gaps arising from restrained credit requirements

  • Elimination of the adverse effects of financial stress on management and employees.
  • Improved ability to attract and retain high-caliber management.