$65MM Debt Restructuring

Transaction modeling and execution support for a complex healthcare restructuring

7Alder joined an active debt restructuring after the investment bank’s previous analytical provider was unable to deliver the required work. We rebuilt the financial analysis, developed transaction materials, and added execution capacity to a restructuring involving approximately $65 million of new debt.

• ClientConfidential Boutique Investment Bank
• Client TypeInvestment Bank
• TransactionHealthcare logistics debt restructuring
• Transaction Size~$65MM of new debt post-restructuring
• WorkstreamsFinancial modeling, restructuring analysis, transaction analysis and transaction materials
• ResultDelivered the analytical foundation and materials required to advance the restructuring process

The Client and Situation

A boutique investment bank was advising a healthcare logistics company through a complex debt restructuring.

The underlying business presented an unusually demanding analytical problem. Its financial information included thousands of individual assets with separate depreciation and amortization schedules, while the transaction required the development of a new capital structure involving approximately $65 million of debt.

The bank needed to understand the underlying economics, evaluate restructuring alternatives, and convert a complicated financial picture into analysis that could support management and capital-provider discussions.

The Transaction Objective

The objective was to establish a reliable analytical foundation for the restructuring.

The work needed to clarify the company’s financial position, asset-level economics, and potential post-restructuring capital structure while remaining flexible enough to evolve with the transaction.

The output had to support decisions, not simply summarize historical information.

The Constraint

The bank had previously engaged another outside provider, incurred significant expense, and still did not have the analysis or materials required to move the transaction forward.

After ending that engagement, the team needed an execution partner that could enter a live restructuring quickly and take ownership of a highly technical analytical workstream.

The complexity of the underlying financial information compounded the challenge. Thousands of assets had to be incorporated into a coherent view of the business and transaction.

The Work Performed

7Alder worked directly with the investment bank to organize the financial information and build the analytical framework supporting the restructuring.

The work included:

• Building and refining financial and restructuring models
• Analyzing operating performance and capital structure
• Organizing complex asset-level financial information
• Evaluating restructuring and financing considerations
• Developing quantitative analysis around transaction alternatives
• Preparing supporting transaction and narrative materials
• Updating the analysis as assumptions and transaction terms evolved
• Supporting the bank and management throughout the workstream

The result was a connected body of analysis the deal team could use throughout the process rather than a collection of standalone schedules.

Representative Deliverables

The Result

7Alder replaced an unsuccessful prior analytical workstream and gave the investment bank the financial analysis and execution capacity required to advance a highly complex restructuring.

The engagement allowed the bank’s senior professionals to remain focused on the transaction while 7Alder took ownership of a substantial portion of the underlying analytical work.

Add Execution Capacity to Complex Transactions

When a live transaction creates more analytical work than the internal team can absorb, 7Alder adds modeling, analysis, and execution capacity around the decision and deadline.

Bring us the transaction, decision, or workstream that needs momentum.