Case Studies

Refinancing a Low Margin Company

J.S. Held Acquires GLI Advisors, Strengthening Our Construction Project Support Services in the Western US and Hawaii

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The Situation

$180 million Tobacco, confectionary distributor to convenience stores and specialty shops. $10 million debt.

  • Loss of key account resulted in 20% decline in revenue. Fixed Charge Coverage fell below 1x
  • Our experts were engaged to develop turnaround plan and refinance credit facility
  • Well-established distributor lost a significant account, causing dramatic decline in financial performance.
  • Fixed Charge Coverage fell below 1x -triggering a default to a loan covenant – and was continuing to decline.
  • Lender’s perception was Company was slow in initiatives to replace lost revenue and to cut costs. Despite having the account perform well for several years, lender fatigue was rapidly increasing towards exiting.

How We Advised

  • We assessed the business operations and identified areas of improvements in product mix, warehouse slotting, safety, asset leases, various components of variable cost and fixed cost structure.
  • Provided recommendations for improving the business, reviewed and prioritized performance improvement initiatives and assisted management with implementations.
  • Constructed a 52-week baseline financial statement and cash flow forecast with key assumptions for performance improvement.
  • Pathway for financial improvement to >1x FCC was beyond a timeline the lender would accept. Our team negotiated a loan forbearance with reasonable terms to allow sufficient time for an orderly refinancing.
  • We prepared a marketing summary, information memorandum, and financial and other data pertinent to prospective lenders conducting preliminary due diligence.
  • We used its network to solicit 40 prospective lenders and led all discussions with interested parties.
  • Executed NDAs with 28 prospects and allowed access to the confidential data room.
  • The competitive process generated 10 term sheets for Company’s consideration; we narrowed the group to four for meetings with management and then negotiated final terms to select the desired new lender.
  • Continued to manage the process to achieve loan closing within the projected schedule and in less than 90 days.
  • Legacy lender was paid in full, all conditions and milestones stipulated in the Forbearance were satisfied.
  • The new lending relationship began with appropriate Availability and covenant structure to allow the Company sufficient time to execute its Turnaround Plan.

Key Contact

Dan F. Dooley, CTP
Senior Managing Director
Strategic Advisory Practice
+1 603 660 8952
[email protected]

Related Practice Areas

> Debt Restructuring Services
When a company is in financial distress, our Strategic Advisory experts design and implement debt restructuring and refinancing strategies tailored to the company’s unique circumstances. We help middle-market businesses stabilize operations, improve liquidity, and optimize their capital structures.

 

> Turnaround and Restructuring Services
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation.

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J.S. Held

Headquarters

50 Jericho Quadrangle
Suite 117
Jericho, N.Y. 11753
+1 516 621 2900
[email protected]

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© 2025 J.S. Held LLC.  

All Rights Reserved.

J.S. Held, its affiliates and subsidiaries are not certified public accounting firm(s) and do not provide audit, attest, or any other public accounting services. J.S. Held is not a law firm and does not provide legal advice. Securities offered through PM Securities, LLC, d/b/a Phoenix IB or Ocean Tomo Investments, a part of J.S. Held, member FINRA/SIPC. All rights reserved.
J.S. Held

Headquarters

50 Jericho Quadrangle
Suite 117
Jericho, N.Y. 11753
+1 516 621 2900
[email protected]

J.S. Held, its affiliates and subsidiaries are not certified public accounting firm(s) and do not provide audit, attest, or any other public accounting services. J.S. Held is not a law firm and does not provide legal advice. Securities offered through PM Securities, LLC, d/b/a Phoenix IB or Ocean Tomo Investments, a part of J.S. Held, member FINRA/SIPC. All rights reserved.
Markets Served

Geographies

Industries

Media Relations

[email protected]

 

© 2025 J.S. Held LLC.  

All Rights Reserved.

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