Daily News: March 14, 2014

Deloitte Advises Hamilton Metals in Refi/Restructuring

With the help of Deloitte Corporate Finance (DCF), and Deloitte Transactions and Business Analytics’ (DTBA) Corporate Restructuring Group (CRG), Hamilton Metals recently restructured its business operations and refinanced $50 million of its existing debt.

DCF acted as the financial advisor to Hamilton Metals in connection with the execution of the new credit facilities, and Deloitte CRG provided the organization with financial advisory and restructuring services.

Deloitte CRG was initially engaged to assist Hamilton Metals in performing an analysis of its operational and financial performance. Subsequently, Hamilton Metals also engaged DCF to assist management in identifying and raising additional sources of capital.

DCF approached a variety of senior and subordinated lending sources and received multiple term sheets from various capital providers within weeks of commencing the process. Hamilton Metals was successful in completing its restructuring plan and raising additional capital.

“With the help of Deloitte we were able to successfully refinance our existing debt and restructure our business operations. Additionally, DCF’s experience and relationships with different funding sources was fundamental in positioning Hamilton Metals to several senior lenders and helping to ensure an expedited process under the current capital constraints,” said Jim Millman, CEO and founder, Hamilton Metals.

“Improved operations, new credit facilities, and additional liquidity are expected to assist Hamilton Metals to rebound quickly. Capitalizing on year-over-year revenue growth should help improve Hamilton Metals’ marketplace competitiveness as 2014 begins,” said Paul Warley, managing director, DCF.

Scott Pinsonnault, Deloitte CRG director, DTBA, added, “Hamilton Metals engaged Deloitte CRG at a critical time to assist management in restructuring its balance sheet to provide more operational flexibility. With its reorganization now complete, Hamilton Metals can continue to grow domestic and foreign operations serving its blue chip customer base.”

Houston-based Hamilton Metals is a stocking distributor of mechanical tubing, OCTG tubing, casing and coupling stock and semi-finished products for the oil and gas industry.