A publicly-traded manufacturer of components for mass transit systems needed to retire an existing term loan while simultaneously expanding its capital base to support international expansion. The maturing obligation carried a penalty of 10% of the outstanding principal amount in the event the Company failed to repay at maturity and required an extension. Approximately three weeks before closing, the lead senior lender chosen to complete the financing changed the terms of the inter-creditor agreement, rendering it unacceptable to the mezzanine lender.
provided revolving credit capacity to both domestic and international subsidiaries.
layer of capital to be repaid from a future stock offering.
By running a debt financing auction process, the Company was assured of back-up and alternative senior lenders capable of stepping in on short notice to complete the financing in the timeframe required.
Drawing on extensive relationships with working capital lenders, facilities for both domestic and international receivables were established, providing significant increase in liquidity.
Possessing relationships with nearly 100 mezzanine lenders allowed the identification of those with investment horizons and interests in sync with the needs of the company.
effect of the extension premium.
capital required to execute on its international expansion plans.
announcement of the refinancing in recognition of the financing's value to the shareholders.