Candlewood Partner’s client was the largest producer of clad metals in North America, serving automotive, industrial controls, and telecommunications markets.
The company’s senior lending group had become fatigued and needed to be taken out of the credit.
Candlewood Partners was engaged by the company to obtain replacement financing to acquire the loans held by its senior lender group at a discount (approx. $50 million of senior debt). Candlewood structured and negotiated an exchange offer with holders of the company’s junior debt at an 85% discount (approx. $30 million), along with sourcing an additional equity investment.