Capital Solutions Closes $75 Million Debt Restructuring of Sponsored Building Products Company
| December, 2023 – The Capital Solutions Group (“Capital Solutions”) announces the closing of a $75 million debt restructuring of a sponsored building products company (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, materially reduced the cash interest burden on the Company, gave the Sponsor an option to buy certain senior secured debt at a substantial discount, 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 closing unprofitable facilities and lengthening the investment horizon to allow the Company to both recover from the current challenging macro environment for building products and give the new CEO time to institute operational improvements. We were able to work with the Sponsor, the Company, and the existing senior secured lenders to structure and successfully execute a transaction that met those objectives.” “The transaction created ample liquidity while providing the Sponsor equity upside through the discounted debt repurchase option,” remarked Capital Solutions Partner, Rob Hornstein. If you are a financial sponsor or an owner-entrepreneur of a business contemplating a debt financing or restructuring, 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, and Financial Restructurings. 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. |
