News
Fort Dearborn Completes Refinancing of the Capsonic Companies
Chicago, Illinois – February 28, 2008
The Capsonic Companies (Capsonic) announced today that it has refinanced its credit facility to generate additional liquidity and improved terms.
Capsonic specializes in the production of insert and composite plastic injection molded parts primarily for the automotive, computer, and electronics industries. The Company also produces end-item assemblies for the automotive industry.
Fort Dearborn Partners and Fort Dearborn Advisors played vital roles in securing the $16 million credit facility for Capsonic. The new facility provides $2 million of additional availability and consists of a $12 million revolver and a $3.8 million term note. This new financing structure enhances Capsonic’s operating flexibility and enables it to continue to profitably provide parts and components to its demanding customer base.
Capsonic retained Fort Dearborn Partners and Fort Dearborn Advisors to help develop an operating plan, identify and implement profit improvement initiatives, and secure new financing. With Fort Dearborn’s assistance, the Company successfully outsourced production of component parts overseas, completed a reduction in force, and reduced operating expenses in its Mexican plant. These improvements generated $1.5 million in annual savings and returned the Company to profitability.
Fort Dearborn’s industry expertise in the automotive sector and deep operating experience enabled the transaction to be completed expeditiously and on favorable terms. The entire assignment, from identifying and implementing operating improvements to completing the financing, was accomplished within 120 days of Fort Dearborn being retained.
The refinancing of Capsonic highlights the unique skills of Fort Dearborn’s Special Situation Group. From the start of the engagement through closing of the refinancing, Fort Dearborn utilized its extensive operational, financial and capital markets expertise to deliver outstanding results for the Company.
About Fort Dearborn Advisors LLC
Fort Dearborn Partners is a leading profit improvement and turnaround consulting firm focused on middle market businesses. Fort Dearborn Partners develops and executes creative and effective strategies that enhance business performance. Fort Dearborn Advisors provides mergers and acquisitions advisory, debt and equity placements and financial restructuring services to companies with enterprise values above $10 million. Both of the Fort Dearborn companies have a wealth of experience and dedicated transaction groups in select industries including Automotive & Transportation Equipment, Business Services, Consumer Products & Retail, Food Processing & Distribution, Distribution, Industrial Growth, Metal Processing, Packaging & Printing and Special Situations.
Fort Dearborn's clients include many leading privately held companies, private equity firms and public corporations.
