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Situation:
This publicly-traded manufacturer of industrial equipment was
in need of capital to complete the final element of its restructuring.
Serving its primarily energy-related customers through industry
boom and bust cycles had created an overly leveraged balance
sheet. Core operating units were profitable however, under
the leadership of highly competent managers.
Solution:
HRCo provided an equity infusion to the company which was used
to retire senior bank debt at a steep discount, thus strengthening
the balance sheet to support the ongoing operations.
Result:
With a stronger balance sheet and continuing profitable operations,
the stock responded favorably and HRCo reduced its investment
in the company through non-disruptive open market transactions.
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