Valiant provides global expeditionary services to the Defense Logistics Agency and information gathering for INSCOM (Intelligence and Security Command), an internal intelligence unit for the Department of Defense along with other systems, training and readiness services to multiple agencies within the defense complex.
Valiant was seeking to raise additional capital to fund the distribution of a shareholder dividend.
Candlewood Partners presented an indicative recapitalization scenario to the Valiant board and was engaged to arrange additional debt financing to fund the contemplated investor distribution. Within four weeks, Candlewood negotiated a nearly 2x increase in Valiant’s senior loan facility commitment as well as approximately 1.5x additional revolving line capacity, both coming at a reduced interest rate. Candlewood negotiated new senior creditor and intercreditor agreements that permitted the investor distribution without any new covenants, a material accomplishment which preserved the company’s operating flexibility and strategic growth options post-financing.
Under its new capitalization structure, Valiant was able to immediately fund a shareholder dividend while retaining maximum balance sheet flexibility. Moreover, the refinancing came at better terms and with lower transaction expenses than originally presented to the Board.