Aaron Shubert

Corporate Transactions

• Better Health Group in the first post-Serta decision liability management “uptiering” transaction that significantly enhanced the company’s liquidity and resulted in a meaningful reduction of the company’s total debt. The transactions included a $112.5 million new money investment into a super senior debt tranche and an uptier exchange of 97% of the company’s first lien term loans into super senior debt tranches, capturing over $38 million in debt discount. The transactions also extended the maturities of the company’s debt, including the company’s $105 million revolving credit facility.
• Apex Tool Group, LLC, one of the largest global manufacturers of hand tools and power tools, in a liability management transaction that significantly reduced the company’s total debt, decreased its go-forward interests costs, and provided for additional liquidity and financial flexibility. The transactions included a $125 million new money investment into a super senior debt tranche and an uptier exchange of 92% of the company’s first lien term loans and 93% of the company’s second lien term loans into a combination of second-out and third-out super senior debt tranches that captured $191 million in debt discount.
• A private equity sponsor on its majority investment in a cross-border joint venture to build-out fiber-to-the-home networks.
• NexCore, a commercial HVAC service platform backed by Trinity Hunt Partners, in its acquisition of Kennedy Mechanical and Ryan Plumbing & Heating, leading providers of commercial HVAC, plumbing, and fire protection services.
• SCF Partners in its financing of its acquisition of Flowchem, Val-Tex and Sealweld from Entegris Inc.

Restructuring

• Klöckner Pentaplast of America, Inc. (Klöckner) and 24 of its affiliates in its voluntary prepackaged Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. Klöckner is a leading global supplier of essential packaging products used by local and multinational businesses across industries from food packaging to medical devices. Klöckner entered into Chapter 11 to implement a comprehensive restructuring transaction that would eliminate approximately €1.3 billion of the company’s €2.32 billion funded debt obligations with the support of certain of the company’s key stakeholders who are supporting the Chapter 11 through a restructuring supporting agreement. As part of negotiations with existing lenders, Klöckner received approval for debtor in possession financing in the amount of €984 million, including approximately €349 million of new money term loans.
• GLAS Trust Company LLC, as agent to a co-operative group of institutional lenders, in the Chapter 11 restructurings of BYJU’s Alpha, Epic! Creations, Neuron Fuel and Tangible Play. Following the discovery of extensive fraud within the BYJU’s ed-tech conglomerate, the lenders exercised remedies against BYJU’s Alpha, which commenced Chapter 11 proceedings and successfully obtained summary judgment of more than $540 million each against multiple defendants on account of fraudulent transfers. In addition, the lenders successfully commenced involuntary Chapter 11 proceedings against Epic! Creations and the other U.S. subsidiaries and obtained the appointment of a Chapter 11 trustee, ultimately resulting in $100 million of proceeds from asset sales. Related international proceedings include, among other things, involuntary insolvency proceedings against Think & Learn in India and receivership proceedings against Great Learning in Singapore.