Capital Solutions Closes $175 Million Recapitalization of Sponsored Specialty Athletic Apparel Company
| April, 2022 – The Capital Solutions Group (“Capital Solutions”) announces the closing of a $175 million recapitalization of a sponsored designer, manufacturer, and distributor of high-performance competitive athletic apparel (the “Company”). Capital Solutions acted as the exclusive financial advisor to the Company, which is owned by a leading middle market private equity firm (“Sponsor”). The transaction extended the maturity of the senior secured debt, converted all mezzanine and other senior unsecured debt to equity, and provided incremental working capital liquidity through an equity investment by the Sponsor. “We specialize in executing complex debt restructurings and financing solutions for middle market companies,” commented Tim Shoyer, Managing Partner, who led the assignment for Capital Solutions. “The Sponsor recognized that the value of the Company would be maximized by deleveraging the Company’s balance sheet and lengthening the investment horizon to allow the Company to fully recover from COVID and capitalize on the operational improvements the management team had instituted. We were able to work with the Sponsor, the Company’s management team, and the existing lenders to structure and successfully execute a transaction that right-sized and simplified the total debt of the Company while providing incremental liquidity for working capital. This catalyzed a maturity extension of the senior secured debt thus providing the Company the time, covenant flexibility, and appropriate incentives to execute the strategic plan.” Capital Solutions Managing Director, Rob Hornstein played an instrumental role in the execution of the transaction. If you are a financial sponsor or an owner-entrepreneur of a business contemplating a debt financing or recapitalization, please contact any of the Capital Solutions professionals below to learn how we can add value to your company’s financing. About The Capital Solutions Group: We provide financial advisory services to closely-held Companies, Private Equity Sponsors, and Lenders in the Middle Market. Our services include: Debt Capital Raising, Recapitalizations, Financial Restructurings, and selected M&A assignments. Since our founding in 2009, we have advised on over $3 billion in debt issuance, financial restructuring, and strategic advisory assignments; these transactions have been executed primarily for private equity sponsored companies. For a detailed overview of our firm and services, see our website at: www.TheCapitalSolutions.com. |
