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 THE RESULT: Caymus Partners was the exclusive financial advisor to HSS Group, Inc. and its subsidiary, Hospitality Staffing Solutions, LLC, (“HSS” or the “Company”) in raising approximately $27.0 million in total senior and mezzanine debt financing to fund a shareholder distribution and working capital. Caymus Partners contacted a total of 78 investors, 25 of which indicated significant interest in the transaction. Of this amount, the Company generated seven term sheets. Caymus Partners helped the Company navigate through the intricacies of each of the proposals, negotiated key terms of the Company’s financing, that collectively maximized total proceeds and achieved important shareholder objectives.
“The Caymus Partners team was an invaluable asset to HSS throughout the entire financing process. They did an outstanding job advising us at every stage with incredible client service, attention to detail and a work ethic and sense of urgency that kept the transaction on track from start to finish. Caymus Partners leveraged its experience and expertise to help us prepare for the transaction and to find the right partner to take HSS to the next level. The entire team was focused on what the transaction would mean to me and my fellow shareholders now and in the future. Caymus Partners was a pleasure to work with both personally and professionally. We look forward to the opportunity of working with them on another transaction in the future. They are true professionals.”
John King, Chairman
HSS Group, Inc.
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Company Description
HSS and its subsidiary, Hospitality Staffing Solutions, LLC, is a leading outsourcer of full-time personnel and cleaning services to the hotel, resort and casino industries. The Company is a rapidly growing business that offers full-time employees who perform specialty services such as housekeeping, stewarding, kitchen, banquet, and laundry. The Company’s clients include industry-leading, high-end, full service properties owned or franchised by blue-chip lodging companies, in addition to high-end hotel management companies. Since 1999, the Company has grown its client base to over 230 properties in more than 20 of the most attractive markets in the U.S. HSS employs more than 2,500 people nationwide. In 2005 and 2006, the Atlanta Business Chronicle profiled HSS among the state’s 10 fastest-growing companies.
Client Objective
HSS sought to raise a significant amount of capital for a distribution to its shareholders as well as working capital, while also retaining significant ownership of the Company.
Caymus Partners Process
Caymus Partners overcame a number of key challenges in making this transaction successful:
- Positioning the Company. Caymus Partners successfully positioned the Company by articulating the niche industry in which the Company operates;
- Efficient Process. Caymus Partners constructed an offering memorandum and investor presentation for senior management that properly allowed the Company to a select from a number of terms and generated interest in a timely manner;
- Generating Rapid Interest. Caymus Partners leveraged its extensive database to contact senior and mezzanine lenders in an expeditious manner;
- Positioning the Company for a Future Transaction. Caymus Partners articulated an analysis to the Company’s shareholders to help understand and increase the value of the Company for another transaction in the future;
- Generating Attractive Terms. Caymus Partners generated seven term sheets from interested investors and lenders, which generated substantial negotiating leverage for our client.
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