Transaction:
Arandell Corporation
Harney instrumental in comprehensive sale and restructuring plan
Arandell is a 100-year-old commercial catalog printer, the third largest in the U.S., with revenues exceeding $80MM and pre-petition loan and lease obligations of $50MM. They had setbacks related to an acquisition of a second production facility, which hurt profitability and saddled the balance sheet with unsustainable debt levels. The company was in default of its senior loan borrowing base and financial covenants.
Our Approach
After thorough analysis and negotiation with stakeholders, Harney crafted a comprehensive sale and restructuring plan that included a sale of the Company, a refinancing of the Company’s working capital lending facility, the restructuring of its obligations, and the closure of the problematic production facility. The plan was effected as part of prepackaged Chapter 11 process. In addition to negotiating the restructured obligations, we took decisive action on several fronts.
DIP Facility: Identified two lenders and structured a complex two-party lending facility for debtor-in-possession (DIP) financing that made the Chapter 11 restructuring and sale possible.
Exit Financing: Identified a working capital lender to refinance the DIP facility and support the working capital needs of the Company upon its sale to a third party and exit from the Chapter 11 process.
Facilitated a competitive process for identifying a stalking horse purchaser and negotiated the stalking horse agreement with the winning party, who also prevailed in the Chapter 11 auction.
Outcomes
Successfully closed a sale of the Company to a private equity firm which kept the management team in place.
Proceeds were sufficient to satisfy secured debtholders and enable the business to continue as a going concern.
Facilitated the sale by putting together DIP financing and exit financing that met the needs of the business.
Maintained union support throughout the process.
Saved 500+ jobs and retained over 95% of customer base.
Returned to profitable operations.
Recognized by M&A Advisor for Refinancing of the Year (under $100M).
Services & Roles
Special Situation Advisory
Sell-side Advisory
Refinancing Co-Advisory
DIP Facility
Exit Financing
*Some engagements may have been performed by team prior to joining Harney Capital.
