Serving as CFO for recapitalization and sale

Picture this...

You’re North America’s second largest supplier of customized, non-apparel promotional products ($300MM), facing severe liquidity pressure due to rapidly deteriorating revenue and the looming maturity of your revolving credit facilities. You need to help you refinance those facilities despite severe economic challenges and declining revenue. (The balance of your capital structure consists of a $125MM senior term facility and $110MM of subordinated notes, which w ere held in direct proportion to equity.)

You turn to Accordion.

Serving as interim CFO, CRO and a financial advisor, we source and lead the refinancing with Wachovia Business Credit. To do this, we:​

• Manage your restructuring negotiations along with your advisors, Houlihan Lokey and Jones Day.​
• Secure a stalking horse bid from a group consisting of ING CLO Management, holder of the majority of subordinated notes and equity, and Aurora Resurgence, a private equity firm. ​
• Assist in commencing a Chapter 11 proceeding and filing a motion to sell to the ING / Aurora group, pursuant to §363 of the bankruptcy code. ​
• Shepherd the company to the §363 auction, where BIC Graphics, USA overbids the ING / Aurora group’s bid. ​
• Oversee all cash management and treasury functions and lead the internal team responsible for supporting the sale process.

Your value is enhanced.

You have not only successfully recapitalized, but your §363 sale to BIC Graphics, USA, is valued at 6.1X EBITDA, representing a 45% premium to the stalking horse bid. The sale enables significant cash recovery to the senior lenders.