Automotive — Financial & Operating Restructuring
In 2006, a middle market private equity sponsor acquired a $340 million global supplier of rubber hoses and vibration management systems to automotive OEM and Tier 1 customers. As the lead director for the sponsor, Carbide Partners’ Managing Partner, Mark Kammert, negotiated the terms of the acquisition and raised the initial senior and second lien debt financing for the transaction. A Japanese affiliate of the sponsor invested in the transaction as a minority equity co-investor.
As the North American auto industry began to weaken in late 2006, followed by the European auto sector in 2008, the company experienced declines in revenues and operating cash flow. In 2008 and 2009, as the global automotive downturn accelerated, the company experienced challenges in meeting its debt covenants and generating liquidity.
Working in partnership with the company’s management team, Mr. Kammert led a series of operational and financial restructurings of the company: