Henry Company’s Refinance of its Senior Debt Facility

Transaction

• A struggling building products company needed to refinance its senior debt in order to provide liquidity to execute its turnaround and growth strategy

Challenges

• Highly Leveraged: Total Debt/EBITDA of 12.57X including $85,000,000 of Senior Notes trading at a steep discount
• Management turnover and acquisition integration problems
• Environmental liabilities

Solution

• FocalPoint was able to see through the current difficulties and highlight the company’s strong brand position, market share and consumer loyalty
  • FocalPoint worked with the bondholders to obtain additional collateral in the form of machinery and equipment and real estate.
  • Received proposals that increased the availability under the revolver and provided for a $10,000,000 equipment acquisition line. Ultimately closed the transaction with Fleet Capital Corporation.
  • The increased availability under the revolver and the capital equipment acquisition line gave the company sufficient liquidity to successfully execute its turnaround plan. EBITDA has increased to $22,000,000 and the company has begun to buy back its bonds.