Griffin Assists WPCS International Incorporated Refinance its Senior Credit Facility
WPCS International Incorporated (“WPCS” or the “Company”), a publicly traded NASDAQ company (ticker symbol: WPCS), is a global provider of design-build engineering services used in communications infrastructure. The Company generates approximately $100 million in revenue annually and has approximately 450 employees in six operations centers on three continents. The Company delivers its services through three business segments: Wireless Communications, Specialty Construction and Electrical Power. These three business segments serve four primary end-markets: Public Services, Healthcare, Energy and Corporate Enterprise.
The Company, which had recorded a profit since its inception in 2002, experienced severe financial losses in FY2011 primarily as a result of adverse developments with respect to three projects in its California operation which resulted in three under-bid contracts and job losses of over $3.2 million. Separately, the Company recorded $2.4 million of non-recurring charges related to accounts receivable, inventory and other accruals. These factors combined to cause WPCS to breach certain financial covenants under its existing senior credit facility with its Lender and the Company decided to pursue a refinancing.
WPCS engaged Griffin as its exclusive investment banker to refinance its existing senior credit facility. Through its relationships with lenders and Griffin’s competitive process, Griffin raised the capital necessary for WPCS to refinance its debt on very favorable rates and terms.