Heavy Construction & High Reach Equipment Rental Company: Restructuring Advisory & Capital Raise

Situation Overview:

  • Due to a difficult macro-economic environment and a cyclical downturn in the equipment rental industry, Ahern faced a considerable debt burden that necessitated a thorough restructuring.
  • The Company’s 2nd Lien Noteholders took an adversarial stance that portended a contentious fight in which the Noteholders would seek to equitize their position.

Armory Solution:

  • In 2010, Armory professionals successfully executed an exchange offer to buy back a portion of the Company’s debt at a discount.
  • In 2011, Armory professionals served as financial advisor to Ahern in a contested bankruptcy filing.
  • Armory’s role included developing and negotiating the restructuring plan and evaluating capital raising alternatives, involving identifying and selecting potential financing partners.
  • Additionally, to combat the 2nd Lien Noteholders, Armory helped guide the negotiations and legal maneuvers to allow time for the Company’s operations and for the capital markets to improve, eventually ensuring management’s equity position was protected.


  • After a thorough vetting and marketing process, Armory helped secure $745 million in exit financing at attractive rates which allowed management to emerge with 100% equity ownership, while paying off the 2nd Lien Noteholders in full in cash, including pre-petition interest.
    • The financing structure consisted of $325 million in an ABL facility and $420 million of Senior Secured 2nd Lien Notes.
  • Armory was successful in establishing a creative financing structure and finding the right partners to assist in carrying out the financing transactions.
  • In addition to providing advisory services to the Company and acting as a placement agent on the exit facility, Armory served as a co-manager on the high yield notes offering.
    • The $420 million of 9.5% Senior Secured 2nd Lien Notes, priced at par to yield 9.5% and hold a five-year maturity (June 2018) to provide Ahern with substantial short-term liquidity.
  • Layering and subsequent bankruptcy plan provided time for an ultimate refinancing that preserved 100% of family equity interests in the recapitalization.