The Company is a distributor of commercial grade building materials in the Midwest and Southeastern United States.
Major product lines include commercial acoustical ceilings and walls, drywall, metal studs, insulation and exterior insulating finish systems.
§As a result of reduced demand, the Company experienced decreased revenues, incurred losses, and found itself in covenant default with its lender. Fort Dearborn was retained at that time to review the Company’s operations, identify and implement profit improvement initiatives, and prepare forecasted financial statements.
With Fort Dearborn’s assistance over the years, the Company has successfully:
–Cut S, G & A expenses;
–Sold underperforming divisions and used proceeds to pay down debt;
–Annually extended the line-of-credit facility with its former lender; and
–Returned to sustainable profitability.
Recently, the Company retained Fort Dearborn to lead its refinancing efforts, including:
–Assisting with preparation of the information packet;
–Marketing the credit to several pre-screened lenders that understand the Company’s industry and its financing needs; and
–Assisting during the extensive due diligence process and negotiation of terms.
Fort Dearborn’s industry expertise and extensive knowledge of the credit markets enabled the refinancing transaction to be completed timely and on favorable terms.
With Fort Dearborn’s assistance, the Company was able to develop and implement a plan that allowed the Company to:
–Pay down debt and return to sustainable profitability;
–Secure a new $11.6 million credit facility which provided $3 million of additional liquidity to facilitate growth; and
–Negotiate a favorable financing structure that reduced principal and interest payments by more than $1 million annually.