Griffin Serves as Investment Banker to the Martz Group in Recapitalization Transaction
Frank Martz Coach Company (“Martz Group” or “the Company”) and its related entities is a fifth generation, family-owned and -operated transportation services company based in Wilkes-Barre, PA. Founded in 1908, Martz Group provides safe, reliable and courteous bussing services across six states from New York to Florida, and Washington, D.C. The Company’s services include daily bus departures to New York and Philadelphia from Northeast PA, and service routes within the greater Baltimore-Washington region. In addition, Martz provides contracted service routes in Florida, plus commuter services, charters and tours throughout its regions. For more than 100 years, Martz has built a reputation as a transportation industry leader, and today it maintains a fleet of more than 100 motor coaches and employs nearly 300 people.
Situation
After several years of strategic transformation, fifth generation leaders Scott Martz Henry and John P. Henry successfully navigated a significant downturn for their industry created by the COVID-19 pandemic. These efforts, however, left Martz with reduced liquidity and a need to invest in new vehicles to support its ongoing recovery and growth. Specifically, Martz sought to recapitalize its existing balance sheet by refinancing its existing debt and provide funding for future capital expenditures. The Company, however, was unable to source the necessary capital partners to support their strategy.
Solution
The Martz Group engaged Griffin as its exclusive investment banker to execute the Company’s recapitalization plan. The goal was to deleverage the Company and provide appropriate financial resources to ensure the continued success, stability and growth of the Company going forward. Griffin designed and recommended several potential capital structure options, including the sale-leaseback of the Company’s real estate, and launched a competitive capital raise process with senior, subordinated and unitranche debt lenders, as well as institutional real estate investors. Ultimately, as a result of this process, Martz selected Northwest Bank for senior debt financing, including a term loan, revolving line of credit and equipment line of credit for future rolling stock purchases, and STORE Capital Corporation for the sale-leaseback of three properties owned by the Martz Group. Northwest Bank is a $14 billion asset financial services company based in Columbus, OH, and STORE Capital Corporation is an internally managed net-lease real estate investment trust (REIT) based in Scottsdale, AZ.
For more information, contact John A. Lee, Senior Managing Director, at 610.205.6106, Stephen J. Meehan, Director, at 610.205.6112, or James T. McKenna, Associate, at 610.205.6107.
