GE Capital Provides $2B in Turnaround Financing Through Q3
Thursday, November 12, 2009
GE Capital, Restructuring Finance said it ended 3Q as one of the most active providers of debtor-in-possession (DIP) and plan of reorganization (POR) financing in the U.S. and Canada, arranging or deploying approximately $2 billion throughout the first nine months of the year. GE said it expects increased demand for restructuring finance to continue through 2010.
"Financing is available for good companies with bad balance sheets, and our in-depth knowledge of the bankruptcy code and restructuring finance allows us to quickly respond to borrowers," said Rob McMahon, managing director of GE Capital, Restructuring Finance. "This will be critical to more and more companies since the current pace of business bankruptcy filings will likely continue well into next year."
Throughout 2009, GE Capital, Restructuring Finance has worked with turnaround advisors and corporate borrowers to meet their needs, including:
Quebecor - Acted as co-agent on an $800 million exit financing for the U.S. and Canadian businesses of this worldwide provider in commercial printing. GE Capital Markets and GE Capital Markets (Canada) Ltd. acted as joint-lead arrangers.
Spectrum Brands - Led a $197 million revolving credit facility as part of a $242 million POR financing for this global consumer products company. GE Capital Markets served as joint lead arranger on the revolver. GE also provided interest rate risk management products and services.
BI-LO, LLC - Led a $125 million DIP credit facility for one of the largest supermarket chains in the southeastern U.S. GE Capital Markets arranged the transaction.
Caraustar Industries, Inc. - Provided a $75 million DIP that converted to a POR facility upon the company's emergence from bankruptcy. The company is a North American integrated manufacturer of 100% recycled paperboard and converted paperboard products.
Sportsman's Warehouse - Provided a $50 million POR credit facility to this outdoor sporting goods retailer. The loan was used upon the company's emergence from Chapter 11 to refinance the $85 million DIP financing GE Capital provided the company earlier in the year.
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