Sypris Solutions Refinances to Support Long-Term Strategy

In Brief

2-Minute Read

Sypris Solutions, Inc. (NASDAQ: SYPR) is a diversified provider of outsourced services and specialty products. The Company performs a wide range of manufacturing, engineering, design, and other technical services, typically under multi-year, sole-source contracts with corporations and government agencies in the markets for truck components and assemblies and aerospace and defense electronics.

Situation Summary

Financial challenges exacerbated by an unexpected loss of their largest customer forced Sypris to seek a replacement financing for its previous credit facility.  To respond to these challenges, Sypris undertook a significant operational improvement plan and sought a new lender that would provide the Company with time and the financial flexibility to execute its turnaround plan in addition to providing it with growth capital. 

Our Approach

Huron Transaction Advisory (“HTA”) was retained to arrange a comprehensive refinancing of the Company’s former senior credit facility and subordinated debt on an expedited timeline.  As part of the process, HTA explored several financing structures that provided the Company sufficient liquidity to execute its business plan and allow for future growth. After doing so, HTA entered the market with a structured and competitive process that would meet Sypris’ objectives.

Results and Benefits

In a relatively short time, the Company received multiple financing proposals that addressed their needs. In the end, HTA successfully arranged a $27 million financing consisting of a $15 million revolving credit facility and a $12 million term loan, all while keeping to the expedited timeline.

Securities  transactions  provided  by  Huron  Transaction  Advisory  LLC, member FINRA/SIPC.

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