Fort Dearborn Partners (Fort Dearborn) is pleased to announce that Wachs Services, comprised of Wachs Technical Services and Wachs Energy Services (collectively Wachs or the Company), has completed the refinancing of its revolving line of credit and term loan.  Wachs Services is an industry leader in maintenance, life extension and new construction projects in the Nuclear, Fossil Fuel, Petrochemical, Refinery, Pharmaceutical, Food and Beverage, Pulp and Paper, and High Purity industries.

Wachs experienced rapid growth due to its superior job performance at a new nuclear construction facility.  The growth in the new customer led to a significant customer concentration in excess of 80% of sales and accounts receivable.  The customer concentration was forecasted to remain at that level for the next 12 months.  In addition to the explosive growth of the Company, they were also defrauded by their third party payroll provider that failed to remit federal and state payroll taxes.  The Company negotiated terms with the federal and state taxing authorities resulting in a block on the borrowing base.

Management retained Fort Dearborn Partners to evaluate its strategies, advise on dealings with its current lender and to seek a new lending arrangement.  With Fort Dearborn's assistance the Company successfully:

• Entered into a forbearance agreement with the current lender that expanded borrowing availability and provided adequate time to refinance the Company based on a 13 week cash flow forecast and a revised fiscal financial forecast.  Additionally, Fort Dearborn negotiated the inclusion of previously excluded collateral in the new borrowing base and reasonable financial covenants.
• Improved cash flow and developed a focus on cash flow forecasting.
• Prepared materials and contacted banks and specialty finance companies to obtain a new lender.
• Received multiple proposals, facilitated lending due diligence and closed the transaction with a major financial institution within 90 days of executing the forbearance agreement.

Our process generated an agreement which raised the line of credit from $9 million to $15 million and provided Wachs with a financing structure that creates additional borrowing availability to help fund the Company's continued growth.

The refinancing of Wachs Services is a noteworthy example of Fort Dearborn's skill in successfully raising capital in "story" situations.  From the start of the engagement through the closing of the refinancing, Fort Dearborn utilized its extensive operational, financial and capital markets expertise to deliver outstanding results for the Company.  We believe that the new financing structure will enable Wachs Services to continue to achieve its corporate goals.

While the details of each engagement vary, this transaction was typical of our investment banking focus of representing privately-held, middle market companies. 

Please keep us in mind for proven middle market investment banking expertise, especially in "story" transactions where our operating skills and consulting excellence lend additional value. 

We look forward to working with you.