CONTECH Announces Financial Restructuring Plan to Substantially Reduce Debt and Improve Its Balance Sheet |
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CONTECH Construction Products Inc.
9025 Centre Pointe Drive, Suite 400
West Chester, OH, 45069
USA
Press release date: November 1, 2010
Change of Control Results in New Majority Ownership by Goldman Sachs Mezzanine Partners
(WEST CHESTER, OH, November 1, 2010) - CONTECH Construction Products Inc., a leading provider of innovative site solutions and stormwater management, today announced that it has successfully completed a balance sheet restructuring with its debt and equity holders, which reduces the Company's outstanding debt by approximately $240 million and greatly enhances CONTECH's financial position to continue to invest in innovation and pursue meaningful growth opportunities. Additionally, the Company disclosed that as part of the restructuring, Goldman Sachs Mezzanine Partners (GSMP) will become CONTECH's majority owner. Funds advised by Apax Partners will continue to hold an equity stake in the business.
"This balance sheet restructuring was essential for CONTECH as it greatly reduces our debt, increases our liquidity and puts us in a stronger position to invest in our future. We are grateful to have the support of Goldman Sachs, our equity partner Apax Partners, our lenders and all other owners of our business. We look forward to working with them over the coming years, as we drive innovation throughout the industry and aggressively go after new markets and key customer accounts, while continuing to expand our global footprint," stated Ron Keating, President and Chief Executive Officer of CONTECH.
Under the terms of the balance sheet restructuring, the Company has permanently removed 100% of the principal amount and accrued interest owed on its mezzanine notes due 2014, representing a total debt reduction of approximately $240 million. Additionally, the Company's senior secured credit facility with Wells Fargo Bank and a syndicate of lenders has also been amended with modified financial covenants and revised interest rates. The Company's revolving credit facility has been extended to January 31, 2013, the same date as its term loan.
Joseph Gleberman, Managing Director of Goldman, Sachs & Co. stated, "CONTECH is a well-run organization with strong and respected brands. We have consistently been impressed with the Company's leadership, especially through these most challenging times. CONTECH is well positioned to help in the rebuilding of our nation's infrastructure. We look forward to working with the management team, helping to shape their vision and delivering long-term sustainable value for all shareholders."
The Company's legal advisor on this restructuring is Kirkland & Ellis, LLP and Perella Weinberg Partners LLP served as the financial advisor.
About CONTECH
CONTECH Construction Products Inc. is a leading provider of site solution products and services for the civil engineering industry. CONTECH's product portfolio includes bridges, drainage, retaining walls, sanitary sewer, stormwater, erosion control and soil stabilization solutions. To contact one of CONTECH's 50 offices or 300 sales and product professionals nationwide, visit www.contech-cpi.com.
Company Contact:
Susan Olt
Marketing Communications Director
CONTECH Construction Products Inc
Tel: 513-645-7333
Press Contact:
Glenn Wiener
President and CEO
GW Communications for CONTECH
Tel: 212-786-6011
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