Prominent Mississippi construction firm specializes in commercial structures and retail complexes.
The ESOP was $30,450,000 for 70% of the company. We provided refinancing of an additional $10M at 4.810% interest and 10 year amortization. The total transaction was $44.5M. We saved the company 2% on debt. Over the next five years we moved more than $80M to the selling owners -- after tax.
Major cellular technology and semi-conductor engineering, manufacturing and marketing company.
We completed refinancing documents for the repurchase liability of $20M for this ESOP originally placed in 1984. They now boast being of the largest employee-owned companies in Silicon Valley and among the 100 largest private companies in California. Annual employee turnover rates consistently are half those of other technology firms in the Silicon Valley. The original plan failed to consider the repurchase liability. Even though implemented poorly by another consultancy, we helped correct the problems by arranging new financing at 3.2% to 4% in private placement debt. Although the transaction was extremely complex, we were able to help the CFO line up commercial paper and other even lower cost debt.
Company provides a host of AG services to farmers, suppliers and producers.
This company needed working capital in the worst way. In January,2003, we began work on refinancing $450M of working capital plus a potential $71M ESOP transaction. We found the working capital by using a commercial paper arbitrage while simultaneously helping defend against a venture capitalist (working with a previous lender to the company) trying to force a hostile takeover.
Two-stage transaction results in one of largest 40 ESOPs in USA.
We created the original ESOP over 15 years ago, designed for a family-owned company with $325M in sales and $40M in debt -- total EBITDA of $3M per year. The result of the ESOP transaction? EBITDA went to $27M. We then sold 38% of the company to an ESOP for $75M, moving the money to the owners tax free on a 1042 tax free exchange, and obtained a loan back to them of $68M in after tax cash. In the next stage, we sold another $40M to the ESOP and used the increased debt capacity to acquire two competitors and a retail distribution channel.
A large engineering company transaction leads to other transactions at unrelated organizations.
An initial transaction involved $20M to buy out retiring owners and we implemented an acquisition strategy using the ESOP. To finance the purchase, CTC worked with the buyer to sell three subsidiaries. As it happened, one divested subsidiary helped Chrysler and GM sell returned lease cars to local markets. The first transaction was $8M and the second $31M. The final divested company revolutionized the way companies buy safety shoes. We found mezzanine financing of $5M and later sold the company to Wolverine for $17M. At Wolverine we utilized an ESOP to help them finance the purchase.
