NORTHBROOK, Ill., Feb. 24, 2020 /PRNewswire/ -- Hilco Corporate Finance, LLC ("HCF"), a mid-market investment bank and an operating unit of Hilco Global, announced the successful completion of a $70 million machinery and equipment sale leaseback transaction for the portfolio company of a multi-billion dollar global private equity fund.
The private equity firm approached HCF to advise and arrange a new M&E Sale Leaseback facility for a recently acquired portfolio company. The proceeds from the Sale Leaseback would be used to pay down higher cost acquisition debt and de-lever the company. HCF was able to maximize value on a Fair Market Value basis for manufacturing equipment in a new world class facility, identify a long-term partner for the private equity fund and portfolio company, and reduce borrowing costs and create future flexibility.
The client engaged Hilco Valuation Services, LLC to perform a Fair Market Value analysis that HCF used when approaching Lessors. This approach allowed HCF to control the narrative from the beginning, setting expectations on value and structure. HCF approached more than 25 potential Lessors to create a competitive environment, ensuring maximization of value, execution efficiency, flexibility and cost. HCF received several competitive proposals and selected a Lessor who was able to underwrite the full request of $70 million.
The client was very pleased as all of their objectives were accomplished. The Sale Leaseback facility also provided additional future fundings that will support the client's growth objectives.
Jason Frank, CEO of Hilco Corporate Finance said, "This engagement is a perfect example of HCF's unique ability to completely understand the company's situation, develop a creative solution, and flawlessly execute the transaction to the satisfaction of all constituents."
About Hilco Corporate Finance: Hilco Corporate Finance LLC is a registered broker/dealer with the Securities and Exchange Commission and a member of FINRA (www.finra.com) and SIPC (www.sipc.org). Hilco Corporate Finance specializes in merger and acquisition advisory services, debt advisory services, private capital raising and strategic advice on mid-market transactions. Hilco Global is an independent and diversified financial services company with a strong track record of maximizing the value of assets for both healthy and distressed companies. Hilco Global is comprised of twenty specialized business unit's that work to help companies understand the value of their assets and then monetize that value.
Gary C. Epstein
Executive Vice President – CMO
SOURCE Hilco Corporate Finance