Case Studies
OFS International LLC
Manufacturing and Industrial

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

The Challenge
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.
The Chiron Solution
As Investment Banker, Chiron obtained term sheets sufficient to replace the legacy secured lenders.
The Result
During the Chapter 11, Chiron continued its Financial Advisory and Investment Banking services and successfully arranged exit financing from multiple financing sources