CMA and CMS Complete Three Complex Deals

September 27, 2017
| Press Release

NEW YORK – September 29, 2017 – Carl Marks Advisors, a leading corporate restructuring and investment banking firm serving middle market companies and Carl Marks Securities, LLC, the broker-dealer affiliate,  capped off a busy and productive summer with the completion of three complex investment banking transactions in the energy and healthcare industries during the month of August:

  • Norte III (Chihuahua state, Mexico)
  • Triad Isotopes, Inc. (Orlando, FL)
  • C&J Energy Services (Houston, TX)

With the ability to leverage extensive experience across multiple industries including healthcare services, energy, retail/grocery, building products, manufacturing, financial services and others – Carl Marks Advisors and Carl Marks Securities have been adept at assisting mid-market companies in restructuring their balance sheets and improving operational efficiencies.

“All three deals played out over an extended period of time, then accelerated to close in August. Each transaction required persistence, tenacity, and a focus on driving the best possible outcome for our clients,” said Evan Tomaskovic, a Partner at Carl Marks Advisors, CEO of Carl Marks Securities LLC and managing partner of the firm’s investment banking group. “We were able to draw on our team’s full set of problem-solving skills and our deep experience in energy and healthcare to successfully navigate very complex processes.”

“We are very pleased to have successfully completed these transactions that highlight the Investment Banking team’s ability to develop and execute unique, out-of-the box financial solutions to complex situations,” said Scott Webb, Senior Managing Director at Carl Marks Advisors and co-head of the investment bank’s restructuring division. “We are excited about the opportunities and new challenges that lie ahead the rest of the year and into 2018,” adds Webb.

About the Transactions:

Triad Isotopes, Inc. is a leading independent radiopharmaceutical company that operates the second largest network of nuclear pharmacies in the U.S.  The company has over 50 pharmacy locations across 22 states that distribute nuclear medicine products to a well-established customer base that includes the largest national GPOs, top tier health systems, large national cardiology clinics, and independent diagnostic imaging centers.   With Triad experiencing industry-wide operational headwinds, Carl Marks Advisors’ investment banking team was engaged to assist Triad in exploring financial and strategic alternatives for the business.  Several paths were considered and ultimately led to the successful sale of Triad to Jubilant DraxImage, Inc., a global diversified healthcare group.  Read Case Study

Norte III consisted of the design, procurement, construction, operation, and maintenance of a 907MW combined-cycle gas-fired turbine power plant located near Ciudad Juarez, Mexico (the “Project”).  The Project was awarded by the Comisión Federal de Electricidad (“CFE”) to Abeinsa Juarez N-III, S.A. de C.V. (the “Sponsor”), a Mexican subsidiary of Abengoa S.A. (“Abengoa”), with a 25-year power purchase agreement (“PPA”) in 2015.  To initiate work on the project, Abengoa sourced an initial financing (the “Bridge Loan”).  Shortly after receiving the Bridge Loan, Abengoa faced its own operational and financial issues and was left with no option but to file for insolvency, leaving crucial funds for this project frozen.

Carl Marks Advisors’ investment banking team was engaged by the Bridge Lenders to assist in evaluating the strategic alternatives available for the Project, including working cooperatively with Abengoa to effectuate a sale of their interests.  Working closely with all parties to build consensus, the team structured a unique two-pronged sale process that maximized interest in the Project and led to the successful sale of Norte III to a motivated strategic consortium, Macquarie Group and Techint Engineering and Construction. Through consensus building, a unique sale process structure, and the ability to work expeditiously to meet key milestones recovery to the Bridge Lenders was maximized. Read Case Study

C&J Energy Services is a large public energy services company that went through an in-court restructuring in 2016.  Carl Marks Securities, LLC was engaged as financial advisor to represent the unsecured creditors and help liquefy the unconventional, long-duration warrants through a competitive sale to institutional investors. Carl Marks Securities, LLC worked with the trustee on the creation of an unusual two-tier auction process with a stalking horse bid that helped create a successful outcome for the unsecured creditors that exceeded expectations. Read Case Study

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