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54.5¢ slater & gordon limited

Ann: Market Update Amendment to Syndicated Facility Agreement, page-359

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Jack5588

445 Posts.

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05/04/17

11:03

Post #: 23868534
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Originally posted by Successwillcome ↑

Thank you for your example.

In relation to revenue one should not forget we in the 2016 financial year was an AUD 900mil revenue company. I think it would be fair to assume that once all the restructuring and performance improvement plans come to an end we will be back on the front foot. So my estimate of AUD800mil revenue is pretty conservative. I am here talking about estimated future earnings which are used to determine current company valuation. Historical earnings have not much value. Let the experts from SGH and our new lenders work out the fair value of the company like I have suggested in previous posts.

You need to be careful not being to pessimistic as you could easily loose out following the pack. I would like to stay ahead of the pack

I have a real life example of a successful recapitalisation.

If the below article is anything to go by it appears we may be looking towards exciting times ahead. Assuming that Achorage Capital Group as some newspaper articles suggest is one of the new major lenders to SGH.

The below is a story of a four year investment (recapitalisation) by Achorage Capital Group (alongside others). During this period the relevant company grew into a market leader in its field.

It was a ‘partnership’ between the company and Achorage for mutual benefits.

It is possible that our new lenders (Achorage) have seen potential in SGH for another successful turnaround

Please read below:

http://www.prnewswire.com/news-rele...f-contech-engineered-solutions-300363500.html

Investor Group Led by Anchorage Capital Group and Littlejohn & Co. Completes Sale of Contech Engineered Solutions
NEWS PROVIDED BY
Anchorage Capital Group and Littlejohn & Co., LLC
Nov 15, 2016, 14:50 ET
NEW YORK, Nov. 15, 2016 /PRNewswire/ -- Anchorage Capital Group and Littlejohn & Co., LLC, in partnership with other shareholders, today announced that they have completed the sale of Contech Engineered Solutions, a provider of infrastructure, commercial and residential site solutions, to QUIKRETE Holdings, Inc.
Contech manufactures and distributes products in three complementary segments that provide engineered site solutions for stormwater management, bridge structure, and drainage applications. Headquartered in West Chester, Ohio, Contech has an industry leading, engineering-centric sales force, and 60 facilities strategically located across North America. Its footprint spans every major U.S. city and all 50 states.
Contech's investor group successfully recapitalized Contech in 2012 and partnered with management to grow the business through both organic initiatives and multiple acquisitions that have enhanced the company's product offerings.
Mike Rafi, Chief Executive Officer of Contech, said, "Every Contech employee has contributed to the success of the company. We have built a business with truly differentiated products, customer service and technical expertise and we are excited to partner with QUIKRETE to continue to enhance Contech's competitive advantage. The Anchorage and Littlejohn teams have been invaluable in supporting Contech during this phase of our growth and we are confident of the Company's bright future under QUIKRETE ownership."
Tony Miranda, Managing Director of Littlejohn, said, "The Contech management team is world-class and it has been a pleasure to partner with them in solidifying Contech's position as the clear leader in engineered site solutions. During our partnership, management successfully restructured the business' go-to-market strategy, drove operating efficiency across the organization, and integrated acquisitions. Contech deserves its hard-earned reputation as a market leader."
Dan Allen, President at Anchorage Capital Group, stated: "Since we first invested in Contech in 2011, the company has achieved substantial earnings growth by improving operations, pursuing select acquisitions, and bringing on new leadership. Combining with QUIKRETE is an excellent outcome for the company and its stakeholders."
Contech was advised on the transaction by RBC Capital Markets, LLC and Kirkland & Ellis LLP.
About Anchorage Capital Group
Anchorage Capital Group, L.L.C. is a New York-based registered investment adviser founded in 2003. The firm manages private investment funds across the credit, special situations and illiquid investment markets of North America and Europe using an active long and short basis, with particular focus on defaulted and leveraged issuers.
About Littlejohn & Co., LLC
Formed in 1996, Littlejohn & Co. this year is celebrating 20 years of serving its investors. Based in Greenwich, Connecticut, Littlejohn is a private equity firm investing in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth that can benefit from its operational and strategic approach. For more information, visit www.littlejohnllc.com.

Don't let negative thoughts get in the way of looking for opportunities

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Hi SWC, this is a good find. Thx.

SGH Price at posting: 12.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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