Griffin Assists The Matworks Company, LLC in Refinancing its Senior and Subordinated Credit Facilities
Founded in 1966 and based in Beltsville, MD, The Matworks Company, LLC (Matworks) is a value-added distributor and manufacturer of specialty flooring solutions, and a provider of floor cleaning services to big-box retailers throughout the United States and Canada.
Matworks was historically financed through an asset-based senior debt facility and a subordinated debt facility. The subordinated debt carried a high cost of capital, and was set to mature in November 2013. In addition, the Company’s rapidly-growing cleaning division required ongoing financing to purchase equipment for new customers. Griffin quickly assessed Matworks’ existing capital structure and the sustainability of its cash flows, and determined that the Company’s credit profile was strong enough to merit an all-senior debt capital structure with a substantially lower cost of capital.
Griffin was engaged by Matworks to refinance both of its credit facilities (senior and subordinated debt) with cash-flow based senior debt. Griffin managed a competitive capital raising process to privately place the senior debt. Griffin procured multiple financing offers, negotiated terms with the various lenders, and the Company ultimately selected Sovereign Bank as their senior lender for the transaction. The transaction closed on April 30, 2013, with Matworks lowering its cost of capital by 70%.
For more information on this transaction, please contact John A. Lee at 610.205.6106.