Case Study: Pacific Process Systems -Note Purchase/Acquisition Financing $7.9MM
PPS’ sales had declined considerably as the price of crude dropped over 70% and rig counts followed suit. A large project in Bogota, Columbia further exacerbated the situation by running over budget, resulting in a large loss. The Company could not service its debt and the senior lenders were forcing liquidation.
Tiger purchased the notes at a discount based upon current market value of the assets, andadvanced an additional $400M of capital to fund working capital needs while working with the company on a new Forbearance Agreement, allowing the company to raise new capital and right-size the business.
Within 120 days of purchasing the notes, Tiger consented to the receiver selling the majority of the assets to a NewCo formed by the operators and an equity sponsor. Additionally, Tiger provided financing to the equity group and NewCo to help fi nance the continued turnaround and recapitalization of the business.
Tiger remains PPS’ lender as we collaborate with stakeholders to restructure the business and liquidate surplus assets.