AlixPartners provided a managing director to serve as chief restructuring officer and served as restructuring and operations advisor to Constellis, which completed a debt de-levering and recapitalization transaction with consent from 100% of its term loan and revolving lenders.
As a result of the debt-for-debt and debt-for-equity exchanges, Constellis reduced its debt by approximately $1.1 billion and annual cash interest payments by up to $90 million, while adding up to $50 million in new capital to support operations.
“This transaction is a significant milestone in our transformation of Constellis, strengthening our company financially and positioning the business for the long term,” Tim Reardon, CEO of Constellis, said. “Constellis is poised for growth and continued success, and we will leverage the backing of our stakeholders and this capital support to drive the next evolution of the business. As a leading global provider of risk management, security, humanitarian, training and operational support services, we remain dedicated to providing our customers with sophisticated and specialized programs and look forward to supporting their mission needs with forward-thinking solutions for years to come.
“Our lenders were very supportive throughout this process and we look forward to continuing to work with them as the new owners of Constellis. We also thank our customers for their support, our business partners for their cooperation and partnership and our outstanding employees for their continued dedication.”
Akin Gump Strauss Hauer & Feld served as the company’s legal counsel, PJT Partners served as its financial advisor and Gibson, Dunn & Crutcher and Houlihan Lokey served as legal counsel and financial advisor, respectively, to an ad hoc group of certain of the company’s lenders.