Vision + Va l u e. Our Achievement Is Your Success

Transcription

1 Vision + Va l u e Our Achievement Is Your Success

2 Variant Capital brings experienced professionals and a full-service investment banking process to the middle and lower-middle market.

3 01: about Our proven Approach Senior-level attention Dedicated resources Creative solutions The professionals of Variant Capital Advisors have an unmatched reputation for high quality work, a focus on client service and superior results. Variant Capital s enhanced credibility with the investor universe during the marketing of mergers and acquisitions, capital raise and restructuring transactions leads to optimal outcomes for our clients. At Variant Capital, each engagement receives senior-level attention and dedicated resources from the initial development of creative solutions through the closing of the transaction. When the situation dictates, our association with Conway MacKenzie, the premier restructuring and financial advisor to the middle market, allows us to provide integrated solutions utilizing a multi-disciplinary skill set covering financial, operational and legal backgrounds. Variant Capital works seamlessly with our affiliate s professionals while providing unique knowledge and perspective that helps build a credible story for companies that are experiencing major operational and/or financial challenges.» Our solutions Capital Raising Mergers & Acquisitions Financial Restructurings

4 02: Solutions Mergers & Acquisitions Variant Capital primarily provides sell-side services to performing and underperforming companies in the middle and lower-middle market. We will work with you from the early stages of strategic planning through the closing, taking a strategic, thorough and results-focused approach to each transaction. With respect to more complex situations, Variant Capital has a proven track record of successfully working with companies within situations that don t sell themselves. Our relationships with financial and strategic investors who specialize in these transactions create sale and auction environments that often exceed client valuation expectations. Strategic alternatives Comprehensive diligence Optimal deal structure Our sell-side role typically includes: u Analysis of business + review of strategic alternatives u Development of sale strategy u Identification + analysis of optimal deal structure u Sell-side due diligence, including creation + maintenance of a virtual data room u Positioning + preparation of marketing materials u Definition + contact of buyer universe u Solicitation of letters of intent u Structuring + negotiation of proposals + transaction documents

5 An Unmatched Reputation for High Quality Work, a Focus on Client Service and Superior Results Resolve Staffing, Inc. Durakon Industries, Inc. Has been acquired by Select Staffing Has merged with Penda Corporation to Resolve Staffing, Inc. in this transaction. to Durakon Industries, Inc., a portfolio company of Littlejohn & Co., LLC, in this transaction. KL Industries, Inc. Has been acquired by JD Norman Industries Transaction of the Year Award Turnaround Management Association Chicago Chapter to KL Industries, Inc. in this transaction. Hastings Manufacturing Company Has been acquired by The Anderson Group, INC. Transaction of the Year Award Turnaround Management Association Detroit Chapter to Hastings Manufacturing Company in this transaction. TexStyle, Inc. Has been acquired by The Anderson Group, INC. The East Division of Sabin Robbins Paper Company Has been acquired by Blackbird Capital Partners to TexStyle, Inc. in this transaction. to Sabin Robbins Paper Company in this transaction. u Page [3]

6 03: Solutions Capital Raising Variant Capital develops long-term capital structure and financing strategies for our clients, coupled with the capabilities to execute those strategies. Our clients benefit from our relationships with lenders and investors who actively seek out opportunities to invest in all segments of the balance sheet. Variant Capital s knowledge of the middle market lender and investor community results in an effective capital raising process that optimizes results for our clients. Long-term solutions Extensive relationships Middle market experience Our capital raising activities have covered a broad range of industries and financing alternatives, including: u Senior debt: both asset based + cash flow oriented u Junior lien debt u Mezzanine financing u Alternative capital u Private equity» Effective process $ Lenders Investors

7 Integrated Solutions Utilizing a Multi-Disciplinary Skill Set Valley Industries Casting Technology Company $20,000,000 Senior secured revolving credit facility to the management team of Thule Towing Systems, LLC, d/b/a Valley Industries, in this transaction. $11,250,000 Senior Secured Revolving Credit AND Term Loan Facilities to Casting Technology Company, a portfolio company of Monomoy Capital Partners, L.P., in this transaction. Craft Cast Company, Inc. Tenax Corporation $4,915,000 Senior Secured Credit Facility $2,300,000 Subordinated Debt to Craft Cast Company, Inc., a portfolio company of Reliant Equity Investors, in this transaction. $8,230,000 Senior Secured Credit Facility $4,000,000 Sale/Leaseback to Tenax Corporation in this transaction. Ground Effects Ltd. Intermet Corporation CAD $14,000,000 Senior debt/recapitalization transaction to Ground Effects Ltd. in its recapitalization. $285,000,000 Recapitalization to Intermet Corporation in this transaction. u Page [5]

8 04: Solutions Financial Restructurings Variant Capital s specialized financial advisory and investment banking services allow over-leveraged middle market companies to survive and ultimately flourish. Variant Capital has a superior record of bringing disparate parties together in negotiations and a wealth of experience in negotiating with senior lenders, bondholders and other creditors. Our experience allows us to identify, credibly support and coherently present strong negotiating positions to enable positive resolutions. Variant Capital acts as an advocate for its client s position and aggressively negotiates with all interested constituents in a transaction. Variant Capital has superior access to traditional and non-traditional sources of capital to complete the most complex refinancing, recapitalization or restructuring. Comprehensive analysis Optimal strategy Flawless execution Variant Capital s role typically includes: u Analysis of the operations, properties, financial condition + liquidity, long-term business plan + related debt capacity of the company u evaluation of various capital structures + alternatives to improve liquidity while supporting long-term growth u Development of an optimal strategy for accomplishing a financial restructuring u negotiation with various stakeholders + advisors to restructure existing debt, equity + other corporate liabilities u Arrangement of DIP financing, exit financing + other capital raising solutions u execution of transactions in the context of out-of-court restructurings or in formal bankruptcy proceedings

9 Variant Capital Professionals have Executed over $9 Billion in Merger & Acquisitions, Capital Raising & Restructuring Transactions Accubuilt, Inc. Recapitalization AND Restructuring of Senior Secured Debt AND Junior Capital to Accubuilt, Inc. in this transaction. Delphi Recapitalization Class A Membership Interests, Class B Membership Interests, Tranche A Delayed Draw TL, Tranche B Delayed Draw TL, 12% Notes due 2014 Variant Capital Advisors acted as restructuring advisor to Elliott Management Corporation, on behalf of the senior creditors, in this transaction. JAC Products Formed Fiber Technologies Out of Court Variant Capital Advisors acted as advisor to the Company in the Restructuring of its First Lien Credit Facility. Senior Secured Debt Senior Subordinated Debt Recapitalization and Restructuring of the above Debt Securities. Variant Capital Advisors acted as investment banker to Formed Fiber Technologies, a portfolio company of Morgenthaler Partners, in this transaction. DavCo Restaurants, Inc. Arrowhead Industries Corp. Recapitalization AND Restructuring of Senior Secured, Mortgage AND Subordinated Debt to DavCo Restaurants, Inc. in this transaction. recapitalization through a Share Repurchase transaction to the Court-appointed Receiver in this transaction. u Page [7]

10 05: offices Chicago 303 West Madison Street Suite 1600 Chicago, Illinois [P] [F] Detroit 401 South Old Woodward Avenue Suite 340 Birmingham, Michigan [P] [F] Variant Capital is affiliated with Conway MacKenzie, the premier restructuring and financial advisory firm to the middle market. Across industries, and across the country, Conway MacKenzie delivers hands-on financial, operational and strategic services that help healthy companies grow and troubled companies get back on track. For more information, please visit

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