Case Studies
Oil & Gas Equipment Manufacturer
Manufacturing and Industrial

SITUATION
- The oil & gas equipment manufacturer is a manufacturer of upstream and midstream process and production equipment for the oil and gas industry
- 2019 revenues reached $137 MM with $20 MM in EBITDA but began to decline from the downturn in energy prices, with negative EBITDA beginning during mid-year 2020 and persisted through the fall of 2021
- Chiron was engaged as Investment Banker and Financial Advisor in October 2021 after the Company’s failed self re-financing. At engagement, the Company was in default with their bank senior-secured lender and had over $10 MM of past-due accounts payable
OUTCOME
- Chiron successfully negotiated with the incumbent senior-secured bank lender to obtain forbearance, which allowed the Company access to its senior secured line of credit throughout restructuring
- Chiron restructured the Company’s $31 MM lease with a third-party landlord, immediately increasing liquidity
- Chiron negotiated with the Company’s Board, its Advisors, and its Private Equity Sponsor to inject $2 MM of equity and lease forbearance to facilitate the refinancing effort with new lenders
- Chiron successfully raised $1 MM+ of debt financing by monetizing the Company’s Employee Retention Tax Credit, funded by a specialty hedge fund, critical to improving liquidity during the restructuring
- Chiron marketed the deal to over 380 lenders and successfully placed a quadruple tranche debt facility totaling over $19 MM
- The restructuring and new financings dramatically increased the Company’s financial stability. At closing, liquidity increased 5.0x versus the bank, committed financing increased by $16 MM, and past-due accounts payable were paid down by $3.5 MM
“The Chiron team was professional, proactive and effective in advising the company through its restructuring and refinancing process.” — John Cannon, Senior VP at Cadence Business Finance
Industry
Industrial Services/Manufacturing
Service Category
Capital Raise + Financial Advisory
Transaction Firms
Company Investment Bank: Chiron
Company Counsel: Locke Lord
Receivables Lender: nFusion Capital
Inventory Lender: Crossroads Financial
Equipment Lender: Utica Equipment Finance
Company Leaseholder: Brennan LLC
ERC Lender: Valiant Capital
Other Firms Involved: Cadence Bank; BlackBriar Advisors