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Investment Banking Services >>>
Private Placements |
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| Company |
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Manufacturer of precision systems for the
electronics, telecommunications, and general manufacturing industries
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| Background |
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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. |
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| Issues |
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Market conditions demanded that the company be
acquired in a shorter than normal time frame for a deal of this
size and complexity |
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Numerous business lines and a complicated capital structure required the unique expertise of Duff & Phelps |
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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 |
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| D&P's Role |
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Worked with the
company to develop and explain a compelling investment thesis
in a concise, well-packaged information memorandum |
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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 |
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Assisted the company
in selecting the most competitive bids from the equity and the
senior and subordinated debt providers |
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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 |
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| Results |
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Company's acquisition
was funded within ten weeks from the beginning of the process |
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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 |
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Advent International,
Paribas Principal, Inc., and RFE Investment Partners provided
the equity financing |
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| Essentials |
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Solid relationship
with management, promoting open communication and effective
dissemination of information to potential investors |
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Familiarity with
specific capital sources, fostering an efficient process and
productive negotiations |
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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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