SIT­U­A­TION

• OFS Inter­na­tion­al LLC (the ​“Com­pa­ny”) is an oil­field ser­vices and equip­ment com­pa­ny pro­vid­ing well cas­ing pipe, thread­ing, cou­plings, inspec­tion, repair, acces­sories and field services
• 2018 rev­enues reached $170 MM with $20 MM in EBIT­DA but began to decline from loss of licensed thread­ing IP and the down­turn in ener­gy prices, with neg­a­tive EBIT­DA begin­ning dur­ing late 2019
• Chi­ron was engaged as Invest­ment Banker and Finan­cial Advi­sor in July 2020, after the com­plete ener­gy price collapse
• At engage­ment, the Com­pa­ny had $95 MM of lia­bil­i­ties includ­ing $35 MM of secured debt in two sep­a­rate financ­ings, one a JPMor­gan Chase ABL and one a financ­ing secured by real estate

OUT­COME

• As Finan­cial Advi­sor, Chi­ron suc­cess­ful­ly nego­ti­at­ed mul­ti­ple for­bear­ance agree­ments with cred­i­tors and rec­om­mend­ed oper­a­tional and cap­i­tal sav­ings, reduc­ing costs $210,000 per month; by 4Q2020 the Com­pa­ny returned to pos­i­tive EBITDA
• As Invest­ment Banker, Chi­ron obtained term sheets suf­fi­cient to replace the lega­cy secured lenders
• By March 2021, Chi­ron suc­cess­ful­ly posi­tioned the Com­pa­ny for an out-of-court restruc­tur­ing before a non-bank cred­i­tor thwart­ed this plan
• Chi­ron imme­di­ate­ly piv­ot­ed to suc­cess­ful­ly arrang­ing DIP financ­ing with­in a 21-day dead­line; pro­vid­ing pro­ceeds to refi­nance Chase’s ABL as well as oper­a­tional liq­uid­i­ty dur­ing a Chap­ter 11
• Dur­ing the Chap­ter 11, Chi­ron con­tin­ued its Finan­cial Advi­so­ry and Invest­ment Bank­ing ser­vices and suc­cess­ful­ly arranged exit financ­ing from mul­ti­ple financ­ing sources
• The Company’s Plan Effec­tive Date was Jan­u­ary 3, 2022

“The Chi­ron team is very knowl­edge­able, reli­able, and ser­vice-ori­ent­ed. They know our invest­ment strat­e­gy well and only approach us with lend­ing oppor­tu­ni­ties that make sense for us. Togeth­er we have worked hard to tai­lor solu­tions for their clients, and we look for­ward to fur­ther suc­cess­es in the future.” — Nick Hart, Pres­i­dent of Sal­ly­port Com­mer­cial Finance

“Chi­ron pro­vid­ed vital finan­cial advi­so­ry and invest­ment bank­ing ser­vices that pre­served OFSi as a going con­cern. They guid­ed us through a series of com­pli­cat­ed, time-sen­si­tive trans­ac­tions begin­ning with an out-of-court restruc­tur­ing agree­ment; quick­ly arrang­ing DIP financ­ing when the out-of-court was thwart­ed; advis­ing us through­out Chap­ter 11 and arrang­ing exit financ­ing; final­ly achiev­ing a Plan Effec­tive Date of Jan­u­ary 3, 2022.” — Alex­ei Rat­nikov, CFO