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Chiron Financial Acts as Financial Advisor, Placement Agent on $16.5MM DIP Facility for OFS International

September 20, 2021, 07:39 AM
Filed Under: Energy Services
Related: Chiron Financial

OFS International LLC (“OFSi”) is an oilfield services and equipment company providing pipe threading, couplings, inspection, repair, accessories and field services. In 2018 revenues reached $170MM with $20MM in EBITDA, but began to decline from loss of licensed threading IP and the downturn in energy prices, with negative EBITDA beginning during late 2019. Chiron was engaged as Investment Banker and Financial Advisor in July 2020. At engagement, OFSi had $95MM of liabilities including $35MM of secured debt in two separate financings, one a JPMorgan Chase ABL and one a financing secured by real estate. Chiron obtained multiple term sheets, seeking to replace legacy lenders out-of-court. The bank creditor preferred a debt replacement prior to filing a bankruptcy

Chiron approached hundreds of capital providers prior to the bankruptcy filing and received term sheets sufficient to replace the legacy secured lenders. Certain lender actions created a 21-day deadline to secure DIP financing as well as replacement debt financing. A number of prospective lenders were unable to meet the timeline, so Chiron did a quick marketing process, obtaining 3 additional DIP financing proposals. The Chiron and OFSI selected the lender seen as most likely to provide the needed liquidity and meet the deadline. Chiron facilitated diligence with the new DIP lender over a seven-day period and presented it in first day hearings. The Company received sufficient liquidity for operations in addition to a bank takeout.

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