Vinyl and Aluminum Window, Door and Screen Manufacturer

Division: Phoenix Management Services


One of the leading, fully integrated manufacturers of vinyl and aluminum windows and doors, screens and related products. The Company services the residential and commercial markets throughout the United States with manufacturing facilities located throughout the U.S. and Mexico.


After several years of significant growth and profitability tied to the robust housing market, revenue began to decline after the burst in the housing bubble. Net sales declined 18.5% from 2007 to 2008 largely due to the economic downturn and softness in new construction sectors and were projected to decline by a further 30% in 2009. Based on the dramatic contraction in the business, the Company began to implement numerous cost savings initiatives, primarily with regard to plant closings, inventory reductions, and headcount reductions. In spite of its efforts, the Company defaulted on its existing loan agreements in 2008 with its Senior Lenders and Note Holders.

In addition to managing the business through the difficult business climate, the Company was faced with having to negotiate a longer term Forbearance Agreement with both its Senior Lenders and the Note Holders while at the same time trying to obtain new financing from a new bank syndicate group in one of the most challenging credit markets. These efforts cost the Company valuable time and added significant strain to relationships with its Senior Lenders and Note Holders, who were owed $45.0 million and $28.0 million, respectively. Lacking the resources and expertise to effectuate a successful Company-driven solution, the Senior Lender required the Company to engage an outside financial advisor to assist the Company with financial forecasting, the negotiation of the Forbearance Agreement and the overall refinancing and restructuring process


Phoenix was engaged as Financial Restructuring Advisor to assist the Company with the negotiation of the Forbearance Agreement and the overall refinancing and restructuring process. Phoenix, with the assistance of the Company’s senior management and outside counsel took control of the negotiations with Senior Lenders and the Note Holders, quickly securing the needed extension of the Forbearance Agreement with both parties and providing the time to focus on the completion of the refinancing process with its new proposed $100.0 million syndicated facility.

Phoenix developed a series of new revised GAAP projections for 2009 and a detailed consolidating cash flow model for each of the seven (7) revenue generating business segments in order to: (i) enable the Company to both project and validate opening availability with the required minimum collateral requirements; (ii) provide the Company with the financial model to operate under the reporting requirements of the new $70.0 million revolver and $30.0 million term loan; and, (iii) demonstrate adequate intra-month availability on a weekly basis and adequate monthly availability on a going forward basis in order for the Company to operate under its revised 2009 budget. In addition, Phoenix managed the relationships with the existing Senior Lenders and Note Holders by preparing (in collaboration with the client) and providing the requisite information needed to demonstrate adequate availability under the extended Forbearance Agreement negotiated by Phoenix.

Despite the Company’s continued revenue declines, continued losses and the lingering softness in the housing market, Phoenix’s efforts resulted in the Company completing a $100.0 million Transaction that successfully resulted in restructuring the Company’s capital structure and overall balance sheet. The Transaction consisted of: 1) a New $70.0 million Revolving Credit Facility secured by the Company’s receivables and inventory; 2) a New $30.0 million Term Loan secured by the Company’s real estate and equipment; and, 3) the pay off of the Company’s existing Revolver and Note Holder debt and the payment of associated fees and expenses.

This complex financing structure not only provided the Company with substantial new working capital and availability at closing but enabled it to enhance and preserve the value of the Company and better position it for future growth.