Case Study: Sypris Solutions, Inc.
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.
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.
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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