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.
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.
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.