SIT­U­A­TION

• The Com­pa­ny is a pub­licly-trad­ed oil field ser­vices provider which required debt financ­ing for its acqui­si­tion of a heavy haul, logis­tics and mobi­liza­tion company
• Both acquiror and tar­get ser­viced a deeply dis­tressed indus­try, and the Com­pa­ny engaged Chi­ron in the Sum­mer of 2019 dur­ing a volatile oil and gas mar­ket with lim­it­ed debt and vir­tu­al­ly no equi­ty investors on the horizon
• The acquiror’s EBIT­DA declined 86% from $8.9 MM in 2018 to $1.2 MM in 2019
• Fol­low­ing the trag­ic death of the Company’s CFO, Chi­ron served as de-fac­to CFO through­out the process
• Chi­ron con­tact­ed over 400 lenders and investors
• As a result of the volatile mar­ket envi­ron­ment, the trans­ac­tion under­went mul­ti­ple changes in financ­ing struc­tures and lend­ing sources pri­or to clos­ing on Feb­ru­ary 27, 2020

OUT­COME

• Re-nego­ti­at­ed stock pur­chase agree­ment for the Com­pa­ny with Sell­er Financing
• Nego­ti­at­ed with 3 Fam­i­ly Offices for con­vert­ible debt with stock grants
• Ulti­mate­ly closed on five sep­a­rate pieces of financ­ing in order to meet the required cash proceeds
• Closed deal despite increas­ing­ly adverse con­di­tions in Oil & Gas and one week pri­or to COVID lock­downs and an oil price collapse

“Chi­ron skill­ful­ly guid­ed our com­pa­ny through a high­ly com­pli­cat­ed acqui­si­tion financ­ing that ulti­mate­ly required five sep­a­rate financ­ing instru­ments and a tremen­dous amount of per­se­ver­ance in a chal­leng­ing mar­ket envi­ron­ment. The Chi­ron team was relent­less.” Logis­tics Company