JWCA advises accuray on its $52 million credit facility with midcap financial
june 2017 | read press release
Transaction Background
J. Wood Capital Advisors was hired by Accuray to explore financing options and create a capital structure roadmap
Objectives:
- Minimize / remove restrictive covenants of its existing facility in order to create capital structure flexibility
- Minimize financing costs and limit equity dilution
- Liability management
Through extensive analysis and scenario mapping, it became clear that re-negotiating or refinancing Accuray’s existing Senior Secured Loan with Cerberus Capital would best achieve the Company’s objectives. JWCA guided Accuray through the entire refinancing process, including:
- Detailed and board- level presentations covering the secured financing marketplace, available loan structures, and pro forma financial analyses
- Introductions to private lenders through JWCA’s network of personal relationships
- Negotiation with lenders on Company’s behalf to obtain the best terms available
- Coordinating and overseeing loan documentation, collateral examination and appraisal, funds flow, and closing process
Results
Obtained meaningful flexibility in covenants of a new ABL facility with MidCap Financial, enabling Accuray with the capital structure flexibility necessary to address its outstanding liabilities
Lowered the overall interest rate by nearly 300 basis points, resulting in annual interest costs to be reduced by approximately $2.0 million+ annually