Winter Harbor LLC
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Century International Arms, Inc.

 

Century International Arms, Inc. is a value-added assembler and distributor of new and surplus firearms, ammunition, and gear to licensed firearms distributors and dealers in the United States. Their firearms are used by both military and law enforcement personnel. Century arms is a family-owned business, with distribution centers located throughout the United States and Canada.

Situation

Due to industry headwinds, the multi-national bank to Century Arms came under pressure to reduce its exposure to the firearms industry. At request of the lender, we were initially engaged to perform a comprehensive business assessment of Century Arms. We were then reengaged by the lender as their financial advisor to find replacement financing for Century Arms.

Scope of Work

Phase 1:

  • Completed comprehensive business assessment focused on the Company’s viability and poor financial performance the previous fiscal year.

  • Developed and communicated restructuring initiatives to the lender.

  • Developed a weekly forecasting and reporting mechanism to provide better visibility for the existing and prospective lenders.

Phase 2:

  • Negotiated two extensions to existing forbearance agreement.

  • Assisted Company with executing restructuring plan developed in phase 1.

  • Provided communication bridge between lender and Company.

  • Contacted network of traditional banks and alternative lenders to find replacement financing for Company.

  • Served as liaison between the existing lender and new lender, negotiating terms of new ABL credit facility.

Engagement Outcome

Winter Harbor generated three term sheets from alternative lenders and two term sheets from traditional banks, just prior to the expiration of the first forbearance extension. One of the traditional banks accepted the offer. We served as a liaison between the existing lender and the new lender to negotiate the terms of a new ABL credit facility, resulting in more competitive pricing and terms than had been provided by the existing lender. Winter Harbor successfully guided the refinance to closure, just prior to the expiration of the second and final forbearance agreement. Moreover, by securing a new financial partner before the final deadline, Winter Harbor was able to help the existing lender avoid severe layoffs and the threat of bankruptcy or foreclosure that could have directly impacted more than 300 employees.