KREAMER, Pa. - MidCap Financial says it has provided $13.5 million in revolving debt financing to support the refinancing of Wood-Mode, Inc. The credit facility will provide for the ongoing working capital needs of Wood-Mode, Inc.
SSG Capital Advisors says it acted as investment banker to Wood-Mode Incorporated in the placement of a financing package to refinance existing indebtedness and generate additional liquidity for growth. The transaction closed in February 2017.
Founded in 1942, Wood-Mode high-end custom cabinetry for kitchens, bathrooms, closets/wardrobes, entertainment areas, offices and hobby areas are marketed under two well-known brand names: Wood-Mode and Brookhaven.
Wood-Mode's design portfolio offers a diverse collection of styles inspired by classical motifs from around the world, as well as American classics. The Company's ever-evolving selection of wood species, door styles, fine furniture-quality finishes and creative custom design elements offer consumers the freedom and flexibility to create a truly personalized living space.
SSC Capital says Wood-Mode experienced a significant improvement in performance in fiscal year 2015 and successfully implemented a number of operational initiatives in FY 2016 that positioned the Company for future growth. However, Wood-Mode's capital structure did not provide adequate liquidity to fund the its seasonal working capital requirements and particularly an anticipated second quarter 2017 production ramp-up.
SSG was engaged to refinance an existing credit facility and secure additional availability to fund theWood-Mode's projected cash needs. SSG solicited interest from a targeted list of traditional and alternative lenders and received multiple term sheets. A split-lien deal was determined to be the best solution, with one lender providing a new revolving line of credit and another lender providing a new term loan. SSG's experience in identifying lenders and running an expedited financing process resulted in a solution for the Company that provided additional availability to finance ongoing operations and future initiatives.
Others who worked on the transaction include:
• Shaun Martin and Barak Tulin of Winter Harbor, LLC, financial advisor to Wood-Mode Incorporated;
• Anne M. Madonia, Steven N. Haas, Francis J. Bergold and Edgar G. Rapoport of Cozen O'Connor P.C., counsel to Wood-Mode Incorporated;
• Sanjay Thapar, Christine A. Dionne, Soufi Mirfakhraei and Leslie A. Plaskon of Paul Hastings LLP, counsel to the Term Loan Lender; and
• Stephen H. Alpert, Mitchell M. Brand, Daniel P. Greenstein and Julie M. Murphy of Stradley Ronon Stevens & Young, LLP, counsel to the Revolver Lender.