Case Study
Case Study
Baker Tilly Capital assists Trachte Building Systems, Inc. with debt refinance
Client need
Trachte Building Systems, Inc. (Trachte) is a leading manufacturer of prefabricated and customized, modular, steel buildings and storage systems. Trachte, a 100% employee-owned company, recently underwent a change in management that improved financial performance, strengthened operational efficiencies, and positively shifted corporate culture. Before new management was brought on, the company undertook a restructuring transaction that heavily burdened its cash flows (in the form of debt service) just before the economic recession of 2008. Additionally, a lawsuit related to the same restructuring transaction was outstanding, which impeded its ability to transact. Finally, Trachte’s outstanding debt obligation far exceeded its servicing ability, which required debt forgiveness negotiations with its lender.
Baker Tilly Capital solution
The corporate finance team at Baker Tilly Capital partnered with Trachte’s CEO and CFO to prepare a comprehensive financing package to fully refinance outstanding debt. With the help of our specialized team, Trachte was able to successfully negotiate equitable debt forgiveness with its current lender and partner with new senior and subordinated debt providers that met the needs of Trachte’s business.
Results
By working as a cohesive team throughout the transaction, Baker Tilly Capital and Trachte were able to successfully refinance, resulting in $17.5 million of new debt available for Trachte to continue operations and pursue new products and markets to enhance value for its employee-owners. As a result of its debt forgiveness, immediate equity value was realized by its employees.
Baker Tilly Capital’s involvement was instrumental in obtaining our new financing package. The project was complex with many twists and turns. It took three times longer than anyone anticipated and Baker Tilly was with us the whole way. And [they were] worth every penny!Larry Pribyl, Chief Financial Officer, Trachte Building Systems, Inc.
For more information on this deal, or to learn how Baker Tilly Capital specialists can help, contact our team.