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Load Rite Trailers, Inc. (“Load Rite”), headquartered in Fairless Hills, PA, is a highly regarded manufacturer of boat trailers. Load Rite specializes in the production of customizable galvanized steel and aluminum boat trailers, which are naturally resistant to corrosion and able to withstand harsher conditions like salt water and winter weather. As a result, since its founding in 1982, Load Rite has grown into the leading brand name boat trailer for coastal and northern markets in the eastern U.S.
Situation
Load Rite was acquired in 2012 by management and a group of individual investors, and the same group subsequently acquired the Fairless Hill facility through a separate entity, LR Properties, LLC. The company experienced tremendous growth since then, and some employees and passive investors desired liquidity for their investments. Load Rite’s President, Thomas Morrison, and other management team members had no material liquidity needs, however, or desire to sell the company.
Solution
Griffin was engaged by Load Rite to establish a value for the company and design a recapitalization plan that met the differing goals of its shareholder group. Ultimately, the Load Rite Board settled on a leveraged equity repurchase plan, wherein the selling shareholders sold a significant portion of their equity without overleveraging the company. Griffin managed a competitive senior debt capital process to raise the necessary capital to fund the equity repurchase, refinance existing Load Rite and LR Properties debt, and provide ongoing working capital and capex financing. Load Rite ultimately selected First National Bank of Pennsylvania as its new senior lender in a transaction that closed in November 2018. According to Mr. Morrison, “Griffin managed the company through a successful competitive capital raising process, sourced very attractive senior debt and assisted us with valuing the company and closing the transaction.”
For more information on this transaction, contact John A. Lee, Senior Managing Director, at 610.205.6106 or Thomas A. Hill, Vice President, at 610.478.2034. For more information on Griffin’s services in general, contact any one of our investment banking professionals.
