SSG Capital Advised Penthouse Publisher in Restructuring
SSG Capital Advisors LLC (SSG) announced it served as the investment banker and financial advisor to Penthouse publisher FriendFinder Networks (FFN) in the restructuring of FFN’s $234.3 million senior-secured notes and $329.6 million second lien notes pursuant to a Chapter 11 Plan of Reorganization in the U.S. Bankruptcy Court for the District of Delaware.
As a result of a highly levered capital structure coupled with declining financial performance and pending debt maturities, the company filed for protection under Chapter 11 of the U.S. Bankruptcy Code in September 2013 in order to effectuate a restructuring transaction that would delever the business and provide for greater financial stability.
The company retained SSG to provide various services to support the proposed plan, including a liquidation valuation, enterprise valuation, equity valuation and feasibility analysis. The plan was confirmed and closed in December, 2013. It will reduce the company’s annual interest expense by over $50 million, eliminate over $300 million of secured debt and return control of the company to the FFN founder, Andrew Conru.
Headquartered in Sunnyvale, CA, FFN is an internet and technology company providing services in the social networking and web-based video sharing markets. It licenses the Penthouse name for the international publication of various adult magazines and for use on various products.
Previously on abfjournal: SSG Advises Penthouse Publisher for Chapter 11, September 18, 2013