• Corporate Finance Transactions

Oglebay Norton Closes on $305 Million Debtor-in-Possession Financing

August 10 2004

As previously reported, Oglebay Norton Company (Other OTC: OGLEQ) (“Oglebay” or the “Company”) announced that it has closed on a $305 million second Debtor-in-Possession (Super DIP) credit facility under approval of the U.S. Bankruptcy Court. The new loan was used to pay off the $246.4 million balance on the prepetition revolving credit facility, term loan and the original DIP facility. Brown Gibbons Lang & Company (“BGL’”) acted as the exclusive financial advisor to the Steering Committee of the Senior Lenders (the “Committee”).

Oglebay Norton Company, a Cleveland, Ohio-based company, provides essential aggregates and minerals to a broad range of markets, from building materials and home improvement to the environmental, energy and metallurgical industries.
 
Due to the significant amount of leverage and complex capital structure of the Company, the Committee engaged BGL to provide strategic advisory and valuation services throughout the restructuring process. “The aggregate and mineral markets typically generate strong and predictable cash flow,” commented Bill Watkins, Vice President at BGL. “In the case of Oglebay, the Company’s strong market presence was somewhat offset by weakness in certain underlying end markets. We were able to understand all of the variables to provide value for our constituents.” BGL’s engagement included a comprehensive analysis, valuation, and business and financial assessment of Oglebay’s six distinct business units. BGL’s business analyses and valuations were used to validate the Committee’s strategy, to negotiate the DIP budget and covenants, and to ensure adequate protection once the Company filed for bankruptcy. 
 
“BGL is very pleased to have successfully advised a group of over twenty institutions with various goals and objectives to cooperate and focus on maximizing value,” stated Nir Gabriely, Director at BGL. “We were able to achieve the best outcome for our client. The refinancing transaction represents a 100% recovery of the Committee’s capital.”
 
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company is a leading independent investment bank serving middle market companies and their owners throughout the U.S. and internationally. BGL’s professionals are experts in mergers & acquisitions, debt & equity placements, and financial restructurings, and were named 2003 U.S. Deal Makers of the Year by The Mergers & Acquisitions Advisor. BGL is the U.S. partner in Global M&A, the world’s leading working partnership of investment banking boutiques. For more information, please visit us at www.bglco.com.

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