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Representative Experience > Manufacturing & Distribution


TUBULAR PRODUCTS COMPANY

Investment Banking

Company Description:

  • Based in Birmingham, Alabama, Tubular Products Company (“Tubular”) is a closely-held, family-owned business and a recognized leader in the design, engineering, manufacturing and supply of value-added laser cut carbon steel tubing, fabricated tubular components, and welded sub-assemblies. Tubular’s products are sold into a variety of end markets, including outdoor and power transmission equipment, all-terrain, automotive and other vehicles and reusable coil carriers throughout North America.

Challenges Faced:

  • The equity holders were seeking a sale or recapitalization to provide liquidity and estate planning needs.

Solutions Provided by SOLIC Professionals:

  • Engaged as Tubular’s exclusive financial advisor and worked extensively with Tubular’s shareholders to effectively market the Company to a diverse group of strategic and financial acquirers by (i) illustrating Tubular’s broad product offerings to multiple and diverse end markets, and (ii) highlighting the Company’s value-added processing capabilities that consistently drive high-margin operating performance.
  • Successful marketing process resulted in significant interest in Tubular, whereby SOLIC professionals structured, negotiated and successfully closed the acquisition.

Result Highlights:

  • Tubular Products Company was acquired by Samuel Manu-Tech Inc., a publicly-traded industrial products company that is listed on the Toronto Stock Exchange (TSX: SMT). This transaction allowed SMT to expand its steel tubing operations and further develop its value-added products throughout North America.

LEINER HEALTH PRODUCTS

Restructuring

Company Description:

  • Leiner Health Products was the nation’s largest private label manufacturer of vitamins, minerals, nutritional supplements and the second largest manufacturer of private label over-the-counter (OTC) pharmaceuticals in the U.S. with revenues in excess of $600 million, senior secured debt of approximately $275 million and sub-debt of $100 million.

Solutions Provided by SOLIC Professionals:

  • Retained by senior lenders to lead a capital restructuring effort through a pre-packaged plan of reorganization

Result Highlights:

  • SOLIC professionals’ management of the reorganization resulted in a 100% claim reinstatement to the senior secured creditors at markedly improved risk adjusted returns.

ALEXIN, LLC

Investment Banking, Private Placement

Company Description:

  • Alexin, LLC was a newly organized company, formed by a team of highly regarded aluminum re-melt cast house operators, to build and operate a state-of-the-art aluminum re-melt billet casting facility near Ft. Wayne, Indiana.

Challenges Faced:

  • Alexin was a start-up Company, so attracting institutional capital was dependent on articulating the investment thesis, validating product demand, construction timeline and relevant skills and experience of the management team.

Solutions Provided by SOLIC Professionals:

  • SOLIC professionals served as exclusive financial advisor and placement agent, preparing and distributing all solicitation materials, identifying, screening and soliciting over 50 lenders and approximately 150 institutional investors and strategic partners and assisted company in obtaining forward purchasing contracts to mitigate demand risk.

Result Highlights:

  • As a result, Alexin successfully raised $43 million in start-up capital including $13 million equity private placement, a $15 million term loan and a $15 million revolving credit facility at an attractive, below market, cost of capital.

BLI HOLDINGS CORP. / BOCCHI LABORATORIES

Restructuring

Company Description:

  • BLI Holdings Corp. was a contract manufacturer for the personal care industry with divisions in Santa Clarita, California and Dayton, New Jersey. Its two divisions – Bocchi Laboratories and Medicia Corp. – manufactured Paul Mitchell hair products, Victoria Secret body lotions, and other high profile personal care products.

Challenges Faced:

  • The company was in monetary default of its senior credit facility due to the loss of significant customers, poor senior management and an excessive debt level.

Solutions Provided by SOLIC Professionals:

  • Engaged by the Senior Lender to affect a capital reorganization including solicitation of a cash infusion.
  • Subsequently, served as stakeholder representative implementing an operational turnaround.

Result Highlights:

  • Successfully led the turnaround of both divisions increasing EBITDA from negative $4.8 million to positive $5.5 million over a three-year period.
  • Following a three-year operational turnaround, SOLIC professionals served as the sell-side advisor in separate transactions for the two divisions, Bocchi Laboratories and Medicia Corp.
  • The improved operational performance and successful sale of the divisions resulted in 30+% annual returns to the investor group during the nearly three-year holding period.

TENSAR LEASE FUNDING CORP.

Restructuring

Company Description:

  • Tensar Lease Funding Corp. is a special purpose finance vehicle consolidated by Tensar Corporation, a U.S.-based multinational holding Company whose subsidiaries develop and manufacture an integrated suite of construction-related products and services that provide soil stabilization, earth retention, foundation support and erosion and sediment control for infrastructure end-markets.

Challenges Faced:

  • Despite profitable operations, due to the combination of shifting market demand for construction services and the overhang of loan commitments from a prior capital restructuring, Tensar was unsuccessful at addressing imminent debt maturities through refinancing in either the high yield bond market or via a traditional bank debt. As a result, Tensar defaulted under its legacy loan obligations.

Solutions Provided by SOLIC Professionals:

  • Engaged to provide financial advisory services to optimize the Company’s cost of capital, including an assessment of current projection model and business plan, and analysis of capital restructuring alternatives.
  • Key activities included:
    • Evaluating and analyzing the cost of each layer of capital, and advantages and disadvantages under each capital restructuring alternative, including valuation analysis, debt capacity analysis and capital structure modifications.
    • Coordinating with outside legal counsel to prepare contingency plans for a possible in-court scenario, which was ultimately avoided.
    • Successfully negotiating a multi-party forbearance agreement, determining strategic restructuring alternatives, and advanced discussions to achieve a consensual out-of-court restructuring.

Result Highlights:

  • Completed a capital restructuring of $280 million of senior debt and $100 million of subordinated debt.

BLI HOLDINGS CORP. / BOCCHI LABORATORIES

Restructuring

Company Description:

  • BLI Holdings Corp. was a contract manufacturer for the personal care industry with divisions in Santa Clarita, California and Dayton, New Jersey. Its two divisions – Bocchi Laboratories and Medicia Corp. – manufactured Paul Mitchell hair products, Victoria Secret body lotions, and other high profile personal care products.

Challenges Faced:

  • The company was in monetary default of its senior credit facility due to the loss of significant customers, poor senior management and an excessive debt level.

Solutions Provided by SOLIC Professionals:

  • Engaged by the Senior Lender to affect a capital reorganization including solicitation of a cash infusion.
  • Subsequently, served as stakeholder representative implementing an operational turnaround.

Result Highlights:

  • Successfully led the turnaround of both divisions increasing EBITDA from negative $4.8 million to positive $5.5 million over a three-year period.
  • Following a three-year operational turnaround, SOLIC professionals served as the sell-side advisor in separate transactions for the two divisions, Bocchi Laboratories and Medicia Corp.
  • The improved operational performance and successful sale of the divisions resulted in 30+% annual returns to the investor group during the nearly three-year holding period.

THE BUDD COMPANY

Financial Advisor

Company Description:

  • The Budd Company was a former maker of auto parts and stainless steel passenger rail cars and related products.

Challenges Faced:

  • The Company filed for bankruptcy protection to modify employee benefits.

Solutions Provided by SOLIC Professionals:

  • Retained by the Executive & Administrative Retiree (the “Retiree Committee”) as financial advisor to assist the Retiree Committee to perform its duties under 11 U.S.C. §1114

Result Highlights:

  • SOLIC professionals were instrumental and successful in analyzing key claims, inter-company transfers between the Debtor and its parent ThyssenKrupp North America, sources and uses of cash, and projected recoveries to various constituents;
  • Identified and reviewed the financial impacts of various key causes of action that formed the basis for significant settlement discussions between various constituents; and
  • Together with counsel, was instrumental in negotiations with the Debtor, its parent, and with other key constituents that resulted in a settlement agreement that provided for significant recoveries to Executive & Administrative Retirees well in excess of recoveries proposed in the Proposed Settlement Agreement filed by the Debtor at the onset of the Chapter 11 case.

INGERSOLL MACHINE TOOLS

Restructuring

Company Description:

  • Ingersoll Machine Tools was a $210 million multinational supplier of special machine tools and cutting tools for metalworking industries, as well as the construction, agriculture and transportation industries.

Solutions Provided by SOLIC Professionals:

  • Acted as financial advisor to Ingersoll’s senior secured lenders in connection with their $55 million secured bankruptcy claim

Result Highlights:

  • SOLIC professionals developed a restructured collateral package and led negotiations with the international debtor resulting in the senior secured lenders realizing a 100% recovery from the sale of Ingersoll’s domestic and international operations through a Chapter 11 bankruptcy and §363 auction process.

Representative experience includes transactions led by SOLIC professionals at predecessor firms