Completed a complex tri-party refinancing for struggling sports retailer
The Company was a producer of non-apparel merchandise under license agreements with most professional sports leagues and a large number of colleges, theme parks, restaurant chains and cruise lines. They tripped financial covenants at the end of 2018, and as a result, the bank determined that they was no longer comfortable with the credit and required the Company to retain a financial advisor to find replacement financing for both the revolving credit facility and the term mortgage loan on its production facility. Then, to complicate matters more, the COVID pandemic hit and sales tumbled and the new prospective lender withdrew.
Harney Partners was tasked with finding a replacement lender(s) and with managing the current lending relationship during the refinancing process.
Created a financial model to estimate the capital needs of the Company given its seasonal sales and working capital needs.
Built a 13-week cash flow model to measure weekly availability and report back to the current lender.
Interviewed a large number of potential providers of credit including firms that only provided revolver solutions, factoring, real estate financing, sale leaseback structures or a combination of debt products.
Managed the refinancing process with an ABL lender, term loan provider and mezzanine lender.
Successfully completed a tri-party refinancing, bringing three different lending sources to the table and resolving multiple complex inter-creditor issues to simultaneously close three separate loan facilities.
Repaid the current lender in full and avoided a forced liquidation of the lender’s collateral.
Strengthened company’s working capital allowing it to handle future growth and seasonal fluctuations.
Services & Roles
Turnaround and Restructuring
Financial Advisory - Refinancing revolving credit facility and term loan
*Some engagements may have been performed by team prior to joining Harney Partners.