FTD - Lender Relationships, Marketing Knowledge, and Structuring Expertise Lead to an Attractive Financing Solution

"We want to thank the FocalPoint team for their ability to add certainty and a differentiated level of execution to this transaction."

Daniel Flesh, Partner, Nexus Capital

Transaction

Nexus engaged FocalPoint to arrange financing in support of its acquisition, for $118 million, of the majority of the Company's assets.

Deal Challenges

FocalPoint spearheaded a rigorous and concise marketing effort, in which we targeted a select group of twelve capital sources. We prioritized the need for speed in diligence and documentation execution; familiarity with the complexities and nuances of the stalking horse bidding process; and ability to deliver a firm commitment subject only to documentation conditionality. FocalPoint successfully conveyed the attractive credit profile of the predominantly "asset light'' businesses that Nexus was acquiring.

Solution

Working hand-in-glove with the principals, turnaround consultants and special counsel, FocalPoint drove a process that culminated in the robust negotiation of four actionable proposals. Nexus ultimately chose to proceed with the credit source offering the greatest covenant latitude and possessing the most experience in the distressed asset realm.

FocalPoint was able to secure as much as a $30 million loan increase providing a debt/equity ratio consistent with the initial agreement ($50 million purchase price increase), some of which was used in the final bid, following conversations with Cerberus.