Winter Harbor LLC

Tower International

 

Tower International is a leading global manufacturer of engineered automotive structural metal components and assemblies primarily serving original equipment manufacturers (‘‘OEMs’’).  They offer automotive customers a broad product portfolio, supplying body-structure stampings, frame and other chassis structures, and complex welded assemblies for small and large cars, crossovers, pickups and sport utility vehicles (‘‘SUVs’’).  Their automotive customers include Audi, BMW, Ford, Honda, Lexus, Mercedes, Nissan, Porsche and Toyota.  Today, Tower International produces $2 billion in revenue each year and employs a staff of nearly 8,000 professionals world-wide.

Our Role

As Tower International approached bankruptcy, they required the assistance of Winter Harbor to serve as Financial Advisor and lead negotiations with prospective lenders.  As Financial Advisor, we:

  • Performed operational evaluation.
  • Evaluated Tower's current operational profitability and cash flow margins.
  • Using the valuation work, we performed a "waterfall" analysis to determine at what EBITDA levels the lender's position would be in jeopardy.
  • Served as Financial Advisor during negations with potential lenders.
  • Secured a new lender who provided Tower International a backstop letter-of-credit.
  • Obtained additional capital for Tower International to apply towards avoiding bankruptcy filing.

Engagement Outcome

Winter Harbor was hired by Tower International to act as Financial Advisor during negotiations with prospective hedge funds as they sought debt-in-processor funding.  We analyzed Tower International's operating profitability and performed a “waterfall” analysis to determine at what EBITDA levels a potential lender’s position would be jeopardy.  Our professionals developed a marketing memorandum for Tower International to deliver to potential creditors.  As Financial Advisor, we secured a new lender, who in turn, provided a letter-of-credit to avoid bankruptcy proceedings and provided additional capital to apply towards emergence.