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| Client: |
Corrpro Companies, Inc. |
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| Business: |
Corrpro is one of the world’s leading providers of corrosion protection services and technology. The company’s offerings include corrosion engineering, cathodic protection, corrosion prevention, and specialty coatings. The Company serves the infrastructure, environmental, defense, and energy markets around the world. |
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| Client Objective: |
BGL was engaged in 2002 to review strategic alternatives with a dual focus of accomplishing either a complete recapitalization of the company’s balance sheet or a sale of the business at a time when the company’s lenders were seeking an exit. The full scope of BGL’s engagement included: (i) managing the relationships between the company and its bank group and subordinated (but subsequently secured) lender; (ii) developing various capital raising strategies and financial models that would be achievable in the current private capital markets and would enable the company to avoid bankruptcy and maximize shareholder value; (iii) soliciting proposals from new senior secured lenders, junior secured (or “Tranche B”) lenders, mezzanine investors and private equity sources; (iv) selling non-core operations; and (v) simultaneously conducting a sale process of the core business.
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| Results: |
In early 2003, BGL successfully completed the sale of two of Corrpro’s U.S. non-core operations, which enabled the Company to reduce its debt and obtain additional time from its lenders to pursue an overall restructuring. BGL proceeded along a dual track to either recapitalize or sell the Company. After an extensive marketing process that resulted in numerous proposals, the Company elected the recapitalization alternative. With BGL’s assistance, Corrpro secured a new $40 million senior credit facility, a new $14 million subordinated debt facility and $13 million of new equity in a comprehensive recapitalization plan that received public shareholder approval based, in part, on a fairness opinion issued by BGL. |
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