Gordian was successful in not only keeping the creditors at bay, but also wresting a discount from the senior secured creditor – including negotiating for shareholders to both leapfrog higher in the valuation waterfall by making it pari-passu with more than 40% of the senior secured debt and obtain a discount on the debt if a sale could be effected near term.
Two months ago, after the orchestration of a "bake-off" amongst competing interested bidders, the Company announced – at a time when the thinly-traded stock was $1 – a merger with Pittsburgh-based EQT Corporation (NYSE: EQT) at $3.58 per share, or an unprecedented premium of in excess of 250%. The aggregate consideration was in excess of $200 million, at a time when the market cap before the transaction was announced was but $16 million. The transaction closed in December 2016.
"It meant a lot that we were able to assist the Board in delivering such a great outcome in the face of difficult circumstances for Trans Energy and its shareholders," said Gordian Group Partner David Herman. In keeping with its tradition of working alongside of, and aligning interests with, shareholders, Gordian took most of its fees throughout the engagement in TENG stock.
"TENG is a great example of how shareholders need not be thrown to the wolves just because there are market headwinds and the wolf – in the form of unhappy creditors – is at the door. With volatility in the energy sector (and more broadly) expected to continue for the foreseeable future, this is extremely important," commented Kaufman.
About Gordian Group
Founded in 1988, Gordian Group is an investment bank recognized as a national leader in helping its clients address complex situations, and has completed about 300 engagements on behalf of companies, boards of directors, and shareholders (including entrepreneurs and private equity firms), as well as state and federal agencies. Gordian Group has experience across all industry sectors, including advising on other energy and related matters involving ATP Oil & Gas, Constellation Energy, Crown Petroleum, Enron, Global Geophysical, Green Mountain Power, Ogden, Osyka, Petsec Energy, Tri-Union Development, and Xtreme Power. For more information, visit www.gordiangroup.com
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SOURCE Gordian Group