Argo Turboserve Successfully Refinances

Transaction Overview

Argo Turboserve Corporation has secured a $70 million revolving credit facility as part of a comprehensive refinancing effort.

Argo Turboserve is recognized as a leading global 4PL provider of supply chain management, aftermarket repair management services, and distributor of original equipment aerospace, power generation and other industrial components.

Since its founding in 1996, the company has cultivated longstanding distribution alliances and partnerships and is an integrated part of its customers’ sales and distribution channels.

The Challenge

Following an operational restructuring and divestiture of several non-core business lines, Argo sought a recapitalization of its remaining operations to better position it for stabilization and growth.

The Approach

Argo retained HTA to arrange a refinancing of its senior secured credit facility. Huron Transaction Advisory (HTA) developed a financing structure that afforded the company enhanced liquidity and capacity to grow its business as projected.

After evaluating several transaction structure alternatives, the project team marketed a structured, competitive process that best supported the company’s business plan.

Results & Benefits

Within 45 days of launching its refinancing efforts, the company received multiple financing proposals from commercial and non-bank lenders. In the end, Argo and HTA successfully arranged a $70 million revolving credit facility at a lower cost of capital than the company’s incumbent senior secured credit facility, while allowing the company to achieve greater advances on its existing asset base.

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