Transactions
& Case Studies

Result of filter: 234

Advisory Services: Recapitalization & Restructuring
Industry Coverage: All Industry Coverage
Deal Status: All Deal Status

Vertellus Specialties Inc.’s restructuring and 363 sale

Date Announced:
5/31/2016

client:
Ad Hoc Group of Term Loan Lenders

Status:
Closed – 10/2016

Value:
$454 million

Dex Media, Inc.’s pre-packaged Chapter 11 plan of reorganization

Date Announced:
5/16/2016

client:
Dex Media, Inc.

Status:
Closed – 7/2016

Value:
$2.4 billion Read the case study

Exclusive Investment Banker to Dex Media Inc. on its $2.4 billion Prepackaged Chapter 11 Plan of Reorganization

On August 1, 2016, Dex Media, Inc. (“Dex”), one of America’s largest providers of marketing solutions for local businesses, announced that it had completed its financial restructuring and emerged from Chapter 11 bankruptcy. Moelis & Company acted as the exclusive investment banker to Dex and played a critical role in helping the company emerge from bankruptcy protection after only 77 days.

At the time, Dex’s primary historical marketing product, yellow page directories, had been experiencing significant double-digit top-line declines in the face of burgeoning internet directory and customer review-based businesses (e.g. Google, Yelp and Angie’s List) as well as the aging of the product’s core demographic. In reaction to those trends, Dex developed and marketed digital advertising solutions, but the transition to digital products was slower than originally anticipated.

As a result, Dex effectuated a merger with Supermedia Inc. through concurrent Chapter 11 bankruptcies in an effort to combat industry dynamics through consolidation. The company emerged with four cross-collateralized secured credit silos creating a complex capital structure, which impeded management’s ability to operate the business as a unified company. In addition to the first-lien secured debt of approximately $2.1 billion, the company also had unsecured notes of $270 million. At the end of 2016, Dex faced a maturity wall and leverage levels would not support a complete refinancing of commitments.

Moelis & Company negotiated a significant deleveraging of the company in order to afford the company the financial flexibility to achieve its strategic plan. The plan was a fully-consensual prepacked plan of reorganization, which provided for the first-lien lenders across the four credit silos to own 100% of the reorganized equity and $600 million of loans under the new credit facility. Dex’s unsecured noteholders also received a $5 million cash payment and warrants to purchase up to 10% of the reorganized  equity in exchange for their approximately $270 million in claims.

The company’s strengthened capital structure, with approximately $1.8 billion less total debt, created significant financial and strategic flexibility. Furthermore, the transaction enabled the company to deepen its commitment to help local businesses thrive by developing and providing marketing solutions to help them grow their organizations.

Fairway Group Holdings Corp.’s pre-packaged Chapter 11 Reorganization

Date Announced:
5/2/2016

client:
Ad Hoc Committee of Senior Secured Lenders

Status:
Closed – 7/2016

Value:
$279 million

Energy XXI Ltd.’s restructuring

Date Announced:
4/14/2016

client:
Trustee and the Ad Hoc Group of EGC Unsecured Noteholders of Energy XXI Ltd.

Status:
Closed – 12/2016

Value:
$2.8 billion

Relativity Media, LLC's Chapter 11 Reorganization

Date Announced:
4/14/2016

client:
Elliott Management Corporation

Status:
Closed – 4/2016

Value:
$1.2 billion

Peabody Energy Corporation’s restructuring

Date Announced:
4/13/2016

client:
Ad Hoc Group of Second Lien Noteholders of Peabody Energy Corporation

Status:
Closed – 4/2017

Value:
$8.8 billion

Norske Skogindustrier ASA’s €218 million exchange offer and €115 million new funding commitment via a new securitization facility and a private placement

Date Announced:
4/11/2016

client:
GSO Capital Partners LP and Cyrus Capital Partners LP

Status:
Closed – 4/2016

Value:
€333 million

BlueLinx Holdings Inc.'s long-term extensions and amendments of CMBS mortgage, ABL and Tranche A

Date Announced:
3/28/2016

client:
BlueLinx Holdings Inc.

Status:
Closed – 3/2016

Value:
$627 million

NGA Human Resources Limited's financial restructuring and recapitalization

Date Announced:
3/23/2016

client:
Subordinated Noteholders

Status:
Closed – 3/2016

Value:
£1.0 billion

Kaisa Group Holdings Ltd.’s restructuring

Date Announced:
3/17/2016

client:
Ad Hoc Committee of offshore bondholders of Kaisa Group Holdings Ltd.

Status:
Closed – 7/2017

Value:
$11.0 billion

Millennium Health, LLC's pre-packaged Chapter 11 reorganization

Date Announced:
12/18/2015

client:
TA Associates Management, L.P.

Status:
Closed – 12/2015

Value:
$2.0 billion

Glitnir hf.’s restructuring

Date Announced:
12/8/2015

client:
Winding-Up Board of Glitnir hf.

Status:
Closed – 12/2015

Value:
€15.4 billion

LightSquared Inc.’s Chapter 11 Reorganization

Date Announced:
12/7/2015

client:
LightSquared Inc.

Status:
Closed – 12/2015

Value:
$4.2 billion Read the case study

Exclusive Financial Advisor to LightSquared Inc. on its $4.2 billion Chapter 11 Reorganization

On December 7, 2015, LightSquared Inc. successfully consummated its Chapter 11 Plan of Reorganization (the “Plan”), which was the culmination of extensive negotiations and litigation among the major constituents in the Chapter 11 case. Prior to the Chapter 11 filing, Moelis & Company pursued an exhaustive strategic and financial investor process to find the right solution for its client and led intensive negotiations to execute an out-of-court restructuring. Due to the opposition of several large holders, LightSquared was forced to file for Chapter 11 to maintain control over its assets.

When LightSquared set out to launch a nationwide, wholesale wireless LTE network, federal regulators denied attempts to clear the Plan, citing concerns about potential GPS interference. As a result, LightSquared was forced to file for Chapter 11 protection in May 2012 with $2.3 billion of debt. Moelis & Company was hired as the exclusive financial advisor to the company, and ran extensive multi-party negotiations over more than three years, evaluating over a dozen plans of reorganization filed with the U.S. Bankruptcy Court.

These extensive discussions resulted in a near-fully consensual plan of reorganization, offering full recovery to all existing debt and preferred equity holders. Moelis & Company also evaluated and assisted in the raising of over $3.5 billion of new debt and equity capital, numerous rounds of DIP financings, and served a critical role in a seven-month mediation process. Moelis & Company provided an expert valuation report as well as extensive trial testimony in support of the Plan and related financings that served as the centerpiece of the Plan confirmation. Additionally, the Firm submitted at least three formal valuation reports and provided testimony in support of multiple Plan proposals and deposition testimony on a number of matters at least nine times during the course of the Chapter 11 proceedings.

LightSquared pursued the confirmed Plan in partnership with an investor group, including Fortress Credit Opportunities Advisors LLC, Centerbridge Partners, L.P., JPMorgan Chase & Co., and Harbinger Capital Partners LLC. Among other features, the Plan provided for the full satisfaction of all claims and preferred equity interests, $3.5 billion in aggregate new-money debt and equity investments, and the installation of a world-class board of directors chaired by former Verizon Chairman and CEO Ivan Seidenberg.

LightSquared emerged from bankruptcy with $4.6 billion of new and rolled debt financing which provided over $900 million of cash. This allowed the company to pursue alternative investment opportunities and capitalize on its valuable wireless spectrum licenses.

Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V.’s restructuring

Date Announced:
11/25/2015

client:
Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V.

Status:
Closed – 5/2016

Value:
$939 million

Bombardier Transportation’s private placement in Bombardier Transportation (Investment) UK Ltd

Date Announced:
11/19/2015

client:
Caisse de dépôt et placement du Québec

Status:
Closed – 2/2016

Value:
$1.5 billion

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