G2 Capital Advisors Served as the Exclusive Financial Advisor to Williams Industrial Services on the Refinancing of its Existing Credit Facilities, Raising $80 Million in New Revolver and Term Loan Commitments
Williams Industrial Services Group Inc. (OTCQX: WLMS) (“Williams” or the “Company”), is a leading provider of construction, maintenance, project, and support services to the energy, power, and industrial end-markets.
Given its strong financial outlook and market opportunity, Williams raised approximately $80 million of total new debt commitments to refinance existing debt, lower interest expense, enhance liquidity, and fund growth opportunities.
G2 Capital Advisors, LLC (“G2”) served as the exclusive financial advisor to the Company, providing combined Capital Markets capabilities and industry expertise from its Industrials & Manufacturing (“I&M”) practice through a multi-stage engagement. G2’s I&M Financial Advisory team supported the Company’s finance and accounting workstreams through detailed working capital and valuation analyses while helping the Company in its strategic planning through financial forecast modeling. Leveraging this work, G2’s Capital Markets team ran a highly competitive process and identified financial partners who were able to provide Williams a flexible capital structure that expands with growth needs.
The new facilities consist of a $30 million Revolving Credit Facility provided by PNC, a $35 million Senior Secured Term Loan Facility and a $15 million Delayed Draw Term Loan (together, the “Term Loan Facility”), provided by Energy Impact Partners (“EIP”, as Agent to the Term Loan Facility), CION Investment Corporation, and CrowdOut Capital.
Randy Lay, Chief Financial Officer, commented, “We are executing well on our strategic plan during a tumultuous year, expanding our core business while also growing and diversifying revenue through new customers and markets. We made significant progress in 2019 and 2020, evidenced by approximately $457.9 million in total backlog at September 30, 2020, with approximately $166.7 million of backlog expected to convert to revenue in the next 12 months. We hired G2 to construct a flexible capital structure solution with the necessary funding needed to deliver on our growing backlog and the diversification and growth objectives of our strategic plan. G2 was instrumental in driving competitive terms, and coordinating and facilitating the process with the lenders through the closing of the Transaction.”
“We are proud to have partnered with the Company through this important operational and financial inflection point. The Company’s new lenders are highly supportive of the business strategy and are providing the flexible capital and liquidity needed to drive future growth,” said Howard Lanser, Head of Capital Markets at G2.
Under the terms of the new facilities, the Revolver interest rate is LIBOR plus 2.25%, and the Term Loan Facility interest rate is LIBOR plus 9.00%, stepping down to LIBOR plus 8.50% when the Total Leverage ratio is lower than 2.50x. The minimum LIBOR floor on both facilities is 1.00%. In addition, the loan facilities mature in December 2025, extending the maturity by three years in comparison to existing facilities. Additional details regarding the transaction can be found in the Form 8-K filed by the Company with the SEC today.
Williams Industrial Services Group has been safely helping plant owners and operators enhance asset value for more than 50 years. The Company provides a broad range of construction, maintenance and modification, and support services to customers in energy and industrial end markets. Williams’ mission is to be the preferred provider of construction, maintenance, and specialty services through commitment to superior safety performance, focus on innovation, and dedication to delivering unsurpassed value to its customers. Additional information about Williams can be found on its website: www.wisgrp.com
About G2 Capital Advisors
G2 Capital Advisors provides M&A, capital markets, and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.
CONTACTS ON THIS DEAL:
Howard Lanser, Managing Director, Head of Capital Markets
C: 312.961.7227 E: [email protected]
Victoria Arrigoni, Managing Director, Industrials & Manufacturing Practice Lead
C: 619.742.6441 E: [email protected]
Louise Roussel, Director, Capital Markets
C: 917.402.5618 E: [email protected]
Connor Grogan, Senior Associate
C: 860.707.5754 E: [email protected]