Transportation Solutions Company
Roles
Financial Advisor
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Jeff Armstrong
Managing Director, Other Professionals
Jeff Armstrong has more than 35 years of experience in operations, finance, and general management.
Tom S. O'Donoghue Jr.
Senior Managing Director | Partner, Partners
Tom O'Donoghue offers a special perspective and deep understanding of business needs and objectives from serving numerous businesses as a turnaround manager, financial advisor, investor, and corporate executive.
- Successfully recapitalized with infusion from current shareholders
- Introduced new senior lender
- Aided in the repositioning of the company for potential sale
A second lien lender of a $50MM transportation solutions company referred CR3 Partners to the company to explore recapitalization alternatives, including the sale of the company, a direct infusion of capital from the second lien lender and/or existing shareholders, and court-supervised restructuring alternatives. The Company was successfully recapitalized and the new Board of Directors was able to provide fresh direction to management, who continued to work to stabilize the business and position the company for a potential sale.
The Situation
- $50MM company that provides dedicated transportation solutions to automotive parts suppliers between Mexico and upper Midwest of U.S.
- Company owns fleet of tractor-trailers and employs skilled drivers
- Existing ownership was only exploring limited restructuring alternatives that were not favorable to second lien lender and other stakeholders
- Senior lender informed company it would not renew its credit facility, which was set to expire in near-term
The Work
- Referred by second lien lender to assist company with exploring recapitalization alternatives, including sale of company, direct infusion from capital and/or existing shareholders, and court-supervised restructuring alternatives
- Performed analysis on liquidity position and financial performance in support of exploring alternative senior lenders
- Worked closely with CEO and CFO, representatives of Board of Directors, second lien lender, and secured lender
- Spent significant time working with investment bankers to explore sale of company, its potential valuation, and timeline to complete transaction
- Served as intermediary, working with all stakeholders to identify alternative solutions that considered all stakeholders and their relative positions
The Results
- Company was successfully recapitalized with injection from capital from second lien lender and certain existing shareholders
- Board of Directors changed its composition, thus giving new direction to management, who continued to work to stabilize business in difficult market and position company for potential sale when market conditions improve
- New senior lender refinanced existing senior lender
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