Pharm-Olam

Summary

Lender Advisor

Houston, TX

Operates as a leading middle market contract research organization. It offers regulatory, project management, clinical operations and trial management, medical affairs, medical writing, data management, biostatistics, and quality and compliance services and solutions. It serves pharmaceutical, biotechnology, and life science companies worldwide.

Carl Marks Advisors (“CMA”) was retained to advise the 1L lender group on a balance sheet restructuring and negotiations with the PE Sponsor and Subordinated Debtholders. The situation was further complicated by the onset of COVID-19 and associated lockdowns on the Company’s global operations.

Key Challenges

Competitive Market

Limited Liquidity

Covenant Defaults

Uncooperative Capital Structure

COVID-19

Engagement Highlights

CMA assessed the Company’s forward looking business plan and cash flow expectations, which included a new money funding request of $15MM to support a turnaround
CMA evaluated balance sheet restructuring proposals / counterproposals between the existing 1L debtholders and the subordinated debtholders
- Subordinated debt had “hold up” leverage due to the cost and stigma associated with a bankruptcy filing
- CMA provided waterfall analysis and an evaluation of the economics of each restructuring proposal to support the decision making of the 1L
CMA advised the 1L on a UCC Article 9 foreclosure sale to a NewCo entity owned by the 1L bank group
- The restructuring provided $15MM of new money funding, reduced existing 1L debt from $95MM to $30MM and fully wiped away $35MM of subordinated debt
- The NewCo entity was able to position itself for growth with a significantly improved capital structure, while avoiding the cost and stigma associated with a bankruptcy filing

Pharm-Olam

Summary

Lender Advisor

Key Challenges

Engagement Highlights

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