Less Than 30 Days
- Background
A regional cellular company had executed a contract to acquire additional cellular frequency from a national competitor. Subsequent to the execution of the Purchase Agreement, some of the Company's Preferred Shareholders filed for an involuntary Chapter 11 proceeding in an effort to force the Company's repurchase of their shares. At the time a principal of Lampert Debt Advisors was approached, the Company had less than 30 calendar days remaining to deliver a firm financing commitment as required by the Purchase Agreement. Contemporaneously, the Chapter 11 proceeding was stayed pending the result of a separate lawsuit between the Company and the Preferred Shareholders.
- Financing Challenge
The combination of a short time frame and the exigencies of creating a financing for a Company operating under the ambiguities of a stayed bankruptcy proceeding presented considerable challenges from both a process and due diligence standpoint./p>
- Solution
- Timetable:
An accelerated timetable for the completion of a debt financing auction was designed to culminate financing commitment within the required timeframe.
- Resource Dedication:
The necessary resources were dedicated to preparing offering materials on an accelerated basis.
- Investor Network:
Extensive investor relationships enabled the solicitation to target distressed investors experienced in creating financings for Ch. 11 companies and more conventional first lien communications services lenders, thereby accelerating their review of the transaction.
- Result
The Company received and delivered the required financing commitment one day before the expiration of the Purchase Agreement. The frequency purchase was completed, nearly doubling the size of the Company.