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 THE RESULT: Caymus Partners was the exclusive financial advisor to Temco Service Industries, Inc. ("Temco" or the "Company") in the private placement of a senior debt
facility. The facility will allow the Company to refinance its existing line of credit, continue to grow, and enable Temco to respond to potential expansion
opportunities. In the midst of the global economic recession and the rapid deterioration of the credit markets, Caymus Partners provided exceptional
guidance to navigate the transaction through the difficult environment. Caymus Partners contacted a substantial number of lenders and, at a time when the credit
market was in significant turmoil, received numerous proposals. Caymus Partners helped the Company evaluate the intricacies of each of these proposals,
negotiated key terms of the Company's financing, and achieved important shareholder objectives.
"Our business and many of our customers have been impacted by the global economic recession. The transaction was consummated in one of the most
difficult lending environments I have seen in my more than 35 year business career. Caymus Partners was a critical partner during this difficult
period."
Henrik Thomassian, Chief Executive Officer
Temco Service Industries, Inc.
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Company Description
Temco is one of the world's largest providers of outsourced facility maintenance services, principally providing cleaning
and value-added building maintenance and support services to customers in the United States, Belgium, the United
Kingdom, The Netherlands and Luxembourg. Its operation and maintenance services include HVAC services, building
management systems, steam and hot water systems, boiler maintenance and repairs, structural and architectural repairs,
indoor air solutions, electrical and lighting maintenance, painting, building maintenance products, utilities management,
as well as staffing for engineers, mechanics, electricians, and handymen.
Challenges Overcome
Caymus Partners overcame a number of key challenges in making this transaction successful:
- Demanding, Extremely Difficult Credit Environment. Caymus Partners provided exceptional guidance and senior-level attention to navigate the transaction through the global credit crunch;
- Unique and Multinational Nature of the Business. Due to the complicated nature of its business model and international operations, the Company had a unique set of issues. Caymus Partners had to understand the Company's operations in different countries, including payment systems, contract terms, insurance liabilities, vacation, etc. Caymus Partners developed various analyses to help lenders understand these issues;
- Complexities of the Financial Model. Caymus Partners engineered a complex financial model, consolidating the Company's various operations, to analyze the Company's capability to amortize its debt and maintain covenant compliance;
- Need to Maximize Interest. In an expeditious manner, Caymus Partners prepared an offering memorandum, various marketing materials, leveraged its extensive database and contacted a substantial number of potential lenders, generating multiple term sheets in an extremely difficult lending environment, which provided substantial negotiating leverage for the client;
- Generating Attractive Term Sheets. Caymus Partners received multiple term sheets in an extremely difficult lending environment, which provided substantial negotiating leverage for the client.
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