CHICAGO, ILLINOIS (January 2008) - We want to take this opportunity to update you on the activities of Navigant Capital Advisors, LLC (“NCA”). 2007 was a year of exceptional growth and success for the NCA Investment Banking and Restructuring Groups, who advised on more than $10 billion of merger, acquisition, divestiture, recapitalization and restructuring engagements.
Recently, NCA and two of its senior leaders were recognized at the annual Distressed Investing Conference, co-sponsored by The Deal and the Turnaround Management Association. NCA was ranked #3 among Top Investment Banks (based upon the number of active assignments). In addition, NCA professionals were named among the top two investment bankers in the distressed market sector.
INVESTMENT BANKING HIGHLIGHTS
Early in the year, NCA served as exclusive Financial Advisor to ClearPoint Business Resources, Inc., a leading workforce solution company, on its merger with Terra Nova Acquisition Corporation. As a result of the merger, in February 2007 CPBR became a publicly listed company on the NASDAQ. In addition, NCA acted as exclusive Advisor for the sale of the assets of ReView Video, LLC, a leading independent distributor of video conferencing, VoIP and additional collaboration equipment, to the Westcon Group, Inc., a global distributor of information technology products. NCA also served as Financial Advisor to Convergent Resources, Inc., a leading provider of Accounts Receivable Management (ARM) services, in its sale to Silver Oak Services Partners.
The second half of 2007 was particularly productive for the firm, highlighted with NCA serving as exclusive placement agent and Financial Advisor to ExtendHealth, Inc., a leading full-service consumer-directed healthcare company, consummating a private placement of Series B Preferred Stock. NCA also served as co-Financial Advisor to InfraSource Services, Inc. in its sale to Quanta Services, Inc. The $1.47 billion all-stock acquisition in August created one of the country’s leading specialized contracting services company with more than $3.2 billion in annual revenue. October found NCA leading several significant transactions including: Select Staffing on its acquisition of the stock of Tandem Staffing Solutions, Inc., a leading provider of temporary staffing services to the light industrial and clerical sectors of the U.S. staffing industry; Everite Machine Products Company, a world leader in electrochemical grinding technology, who consummated a recapitalization with Eureka Growth Capital. NCA also served as Financial Advisor to Scherer Schneider Paulick, LLC in its merger with BPI US Holding LLC, forming SSP-BPI Group, the most prominent career transition and executive coaching firm in the Midwest.
We rounded out the year by serving as the sell-side Advisor in connection with the acquisition of Atlanta Cardiology Group, PC, one of the largest groups of cardiologists in Georgia, by Piedmont Healthcare. Our professionals also served as exclusive Financial Advisor to Alexin, LLC, an aluminum extrusion billet producer, in connection with the consummation of an institutional private placement of equity in addition to a term loan and revolving credit facility for a significant start-up project financing. Additionally, NCA served as exclusive Financial Advisor to Deutsche Bahn AG, the largest rail transportation company in Germany.
RESTRUCTURING HIGHLIGHTS
NCA’s Healthcare Restructuring professionals also enjoyed a very active year. Highlights include providing interim management and financial advisory services to PBI Regional Medical Center (PBI) in connection with its bankruptcy restructuring; NCA professionals succeeded in leading a dual operating and financial restructuring that culminated in the sale of the assets of PBI to St. Mary’s Hospital; our Restructuring professionals were also engaged as Financial Advisor and interim manager to Brotman Medical Center in connection with the turnaround and restructuring of this acute care hospital in Culver City, California.
The economic downturn, credit crunch and subprime mortgage crisis provided additional opportunities for NCA to assist several institutions in the Financial Services sector. NCA is currently acting as Financial Advisor to several large financial institutions in connection with the restructuring of multiple mortgage warehouse lending relationships and homebuilder credits. In addition, NCA has provided financial advisory and restructuring services in connection with the ongoing Chapter 11 bankruptcies of New Century Financial, Mortgage Lenders Network, People’s Choice Home Loan, Aegis Mortgage, First Magnus, MILA, Inc., Oak Street Mortgage and Neumann Homes.
NCA’s expertise in the Financial Services industry is further evidenced by our engagement as Financial Advisor to the bankruptcy trustee for Sentinel Management Group, Inc. Sentinel was a cash management firm which leveraged its investment in securities, losing hundreds of million of dollars of customer deposits during the summer of 2007. NCA serves as Financial Advisor to the court appointed Trustee. We also provide an interim management role supporting the remaining operations of Sentinel and assisting the Trustee in recovering assets for the creditors of the Estate. Our team also serves as Financial Advisor to the Sole Managing Member of Bayou Group LLC, the $450 million hedge fund which filed Chapter 11 bankruptcy in 2006. Bayou was a ponzi scheme that had been accepting investors’ contributions for years while reporting fictitious gains. NCA assisted the Sole Managing Member and his counsel in determining the victims of the fraud and the recovery of Estate assets.
In addition to advising Alexin, LLC in the Manufacturing industry, we work closely with BLI Holdings Corp., a contract manufacturer for the personal care industry with divisions in California and New Jersey. NCA Restructuring professionals were engaged by BLI’s senior secured lenders to evaluate capital restructuring alternatives. NCA structured and negotiated the successful consummation of an out-of-court reorganization simultaneous with the execution of a competitive sale process of the restructured debt in the secondary market. NCA continues to advise the Company through a successful operational turnaround, taking an active role in the improved operations and increased profitability of the Company.
NCA remains dedicated to serving the corporate finance needs of middle market companies, private equity groups, management teams, lenders and other creditors. Our investment banking, restructuring, valuation, and transaction advisory service offerings are led by professionals possessing world-class credentials. Moreover, NCA’s fairness opinion capability has positioned NCA as a leading national independent full service provider of corporate finance services dedicated to the middle market.