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Private Placement
Company Manufacturer of precision systems for the electronics, telecommunications, and general manufacturing industries
Background The company had the opportunity to acquire a manufacturer of soldering equipment, board rework, fume extraction, fluid dispensing, and static control devices for the circuit board industry. To complete the transaction, the company needed the right investment bank to raise the senior debt, subordinated debt and equity at competitive prices. Duff & Phelps represented the company in raising the capital for this acquisition.
Issues Market conditions demanded that the company be acquired in a shorter than normal time frame for a deal of this size and complexity
  Numerous business lines and a complicated capital structure required the unique expertise of Duff & Phelps
  Needed to work within the constraints of the senior debt, subordinated debt and equity markets to create a capital structure that delivered competitive terms and minimized dilution for the equity holders
D&P's Role Worked with the company to develop and explain a compelling investment thesis in a concise, well-packaged information memorandum
  Leveraged our network of capital sources by running a broad process that encompassed a wide range of senior debt, subordinated debt, and equity providers and negotiated the most competitive deals
  Assisted the company in selecting the most competitive bids from the equity and the senior and subordinated debt providers
  Guided the various investors through the investment process, including due diligence, allowing the company to focus on its business and due diligence of the company being acquired
Results Company's acquisition was funded within ten weeks from the beginning of the process
  Banque Paribas and Paribas Capital Funding provided the senior debt and subordinated debt, respectively. Banque Paribas syndicated the senior debt to LaSalle National Bank, First Source Financial, and Pilgrim America Prime Rate Trust
  Advent International, Paribas Principal, Inc., and RFE Investment Partners provided the equity financing
Essentials Solid relationship with management, promoting open communication and effective dissemination of information to potential investors
  Familiarity with specific capital sources, fostering an efficient process and productive negotiations
  Understanding of the market place, resulting in realistic expectations before and during execution and delivery of terms that allowed management and the board to make timely decisions
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