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Case Study:
Large Electronics Manufacturer Obtains $90M in Difficult Financing |
Overview of Project
An electronics manufacturer that provides services to original equipment manufacturers had poor financial results and a restatement of earnings, and its senior lender was concerned by its write-down of inventory. Manchester was engaged by the board of directors to refinance its senior debt. |
The Challenge
Our client is a publicly traded company with up to $750 million revenue that provides electronics manufacturing services to original equipment manufacturers in the communications, computing and data storage, industrial equipment, and medical industries. It had $80 million of senior debt with a large national bank and a finance customer, and its lenders were becoming concerned with the client’s write-down of inventory. Re-financing was a difficult option due to the client’s recent sub-par performance and restatement of earnings. |
The Engagement
Manchester was engaged by the company to refinance its senior debt. |
The Solution
Manchester conducted due diligence, wrote a Credit Initiation Memorandum, and uncovered a $10 million collateral pocket that was previously unrecognized. We hosted lender meetings and coached our client's management team through each presentation. This enabled our client to mend their relationships with their lenders, while also negotiating to secure the best terms and conditions possible.
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The Impact
As a result of Manchester’s engagement, our client secured an expanded $90 million line of credit with their lenders under better terms and conditions than their previous credit facility had provided.
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Working with Manchester
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