Alvarez & Marsal advised Hi-Crush, a fully-integrated provider of proppant logistics solutions, on its completion of a financial restructuring and emergence from Chapter 11 bankruptcy.
Hi-Crush eliminated approximately $450 million of debt from its balance sheet and more than $76 million of annual interest expense and lease payment obligations.
Hi-Crush hentered into a new $25 million senior secured asset-based loan and paid off outstanding amounts under its debtor-in-possession term loan with proceeds from a $43 million equity rights offering. The company’s post-emergence cash balance is approximately $35 million.
In accordance with the plan, Hi-Crush created a new board of directors. The new board consists of Colin Leonard, Brad Kottman, Jacob Mercer and Marc Rowland, in addition to Robert E. Rasmus, CEO of Hi-Crush.
All existing shares of the company’s common stock were cancelled pursuant to the plan, and the company issued 9,382,378 shares of new common stock pro rata to the holders of allowed claims arising under the prepetition notes.
Additionally, Hi-Crush is authorized to issue up to an additional 4,262,836 shares of new common stock to holders of general unsecured clams pursuant to, and in accordance with, the terms and conditions of the plan as such holders’ general unsecured claims become allowed under the plan. The new common stock will not be traded on a public exchange.
Lazard acted as investment banker, Latham & Watkins acted as legal counsel and Alvarez & Marsal acted as restructuring advisor to Hi-Crush.
Moelis & Company acted as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison acted as legal advisor to certain holders of Hi-Crush’s senior unsecured notes.
