Meet Our Team Vincent J. Colistra
Meet Our Team

Vincent J. Colistra

Senior Managing Director and Shareholder
Years with Phoenix: 20

Vincent Colistra is a Senior Managing Director and Shareholder of Phoenix Management Services, Inc. and the firm’s investment banking division, Phoenix Capital Resources. He joined the firm in 1997 as a Director and became a Partner in 1998.

Vincent has managed or participated in over 60 engagements since joining Phoenix that involved developing and implementing solutions in complex corporate restructurings and reorganizations, operational and financial turnarounds, recapitalizations, re-financings, the raising of senior debt, second lien debt, subordinated debt with warrants and preferred and common equity, as well as representing strategic and financial buyers and sellers of businesses in both the public and private sector. In addition, Vincent has successfully managed numerous engagements for companies wherein the ultimate solution to maximize value for the various constituents required filing for protection of Chapter 11 of the United States Bankruptcy Code to ultimately effectuate operational turnarounds, balance sheet restructurings, sales of the businesses through the §363 auction process and Plans of Reorganization. He has served in the capacity at Phoenix Management as both financial advisor and in direct management positions as CRO, CEO, COO and CFO and has assisted clients in a wide spectrum of industries including manufacturing, building components, distribution, equipment leasing, specialty/structured financing, mining, restaurants and retailing. As the Senior Managing Director of Phoenix Capital Resources, Vincent has successfully completed numerous transactions that have included re-financings, restructurings, recapitalizations, and §363 sales within bankruptcy.

RECENT PHOENIX ACCOMPLISHMENTS

  • Served as the exclusive financial advisor to a more than 100-location chain of family-style restaurants operating in the Pacific Northwest with approximately $160 million of revenue and $10 million of EBITDA. The Company was purchased in 2005 in a vintage LBO with a number of institutional mezzanine and equity investors participating in the capital structure. Due to the economic conditions in recent years, the EBITDA results had tripped covenants for the senior and mezzanine debt and compounding the problem was the fact that several members of the investment group at the preferred and common level were “out of the money” given the current enterprise value based on the depressed EBITDA results. In addition, one of the participants in the senior and second lien debt wanted out of the credit, requiring additional funds being put in from either a new lender or from the current investor group. The investors attempted to work through a solution themselves for several months but were unable to reach a consensual resolution. Phoenix was engaged and was able to broker an “out-of-court” settlement that involved: (i) new money coming in from one of the “out of the money” preferred investors; (ii) the mezzanine investors converting approximately 50% of their debt into equity resulting in lowering the Company’s leverage from 6.29x to 4.25x; (iii) the senior lender proving an extended and increased facility at substantial lower rates and less onerous covenants; (iv) a new MIP program being established for the management team; and (v) new equity ownership being reset for the various investors based on the Company’s new capital structure and current enterprise value.
  • Served as the exclusive financial advisor to JT Walker, a $400 million fully integrated manufacturer of vinyl and aluminum windows, doors, screens, and related products. 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. They were projected to decline further by 30% in 2009. Based on the dramatic contraction in the business, the Company attempted 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 insurance Note Holders. 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 million Transaction that successfully resulted in restructuring the Company’s capital structure and overall balance sheet. The Transaction entailed: (i) a new $70 million Revolving Credit Facility secured by the Company’s receivables and inventory; (ii) a new $30 million Term Loan secured by the Company’s real estate and equipment; and (iii) the 100% pay off of the Company’s existing Revolver and insurance Note Holder debt and the payment of associated fees and expenses. This complex financing structure provided the Company with substantial new working capital and availability at closing. In addition to addressing the Company’s current and future working capital needs, Phoenix helped enhance and preserve the value of the Company by avoiding bankruptcy and better positioning it for future growth. While management was contemplating bankruptcy prior to Phoenix’s involvement, the Company’s enterprise value is currently north of $200 million.
  • Served as the exclusive financial advisor to Home Market Foods, a $100 million progressive and diversified premium food and meal solutions company that was experiencing several challenges: (i) the unprecedented rise in raw meat prices; (ii) realizing the synergies of a remote acquisition of a frozen food facility; (iii) subsequent problems with consolidating previous acquisitions; and (iv) problems with a major system conversion that left the company over leveraged and out of compliance with its various lenders. Vincent and his team of Phoenix professionals were successful in completing an out-of-court restructuring that involved $30 million of new Senior Credit Facilities, the restructuring of $10 million of existing Senior Secured Equipment Notes and Leases, the restructuring of $5 million of Seller Notes, the elimination of $18 million of Subordinated Notes and the pay off of approximately $20 million of Senior Secured Notes. This transaction won several awards from the M&A Advisor for its complexity and successful outcome.
  • Served as Chief Restructuring Officer to Piccadilly Cafeterias, Inc., the largest publicly held restaurant chain in the southeast with more than 175 locations in fourteen states that involved the restructuring, turnaround and sale of the business at a 50% premium over the initial “stalking horse” bid negotiated prior to filing bankruptcy as a result of the improved EBITDA from Phoenix’s turnaround initiatives. Saddled with more than 20 consecutive quarters of same-store sales declines, a number of unprofitable locations, a $40 million under-funded pension plan and an onerous senior note issue that required large principal and interest payments, Vincent recommended to the Board that they explore the sale of the company as a “going concern” in order to maximize value for all the constituents, given the fact that the company was in the “zone of insolvency.” Phoenix secured a “stalking horse bidder” for $54 million and subsequently conducted a §363 auction within bankruptcy. In conjunction with Vincent’s restructuring efforts, Phoenix was able to improve the company’s profitability from $16 million to $25 million in EBITDA and was successful in increasing the final sale price by over 45% to $80 million. Through the efforts of Phoenix, the various constituents in the case improved their anticipated recovery from 85% on the dollar for the secured note holders to 100% plus all pre and post petition interest, and the unsecured creditors’ realized an 800% improvement in their anticipated recovery from 3 cents to approximately 40 cents on the dollar.
  • Served as Financial Advisor in the refinancing and recapitalization of a $250 million leading provider of electronic manufacturing services (EMS) business that involved $55 million of new credit facilities, including a new Senior Credit Asset Based Revolver, a second lien Term Loan and a Subordinated Note with warrants.
  • Served as the Chief Operating Officer of UniCapital Corporation, a publicly held national equipment leasing and specialty finance company that was involved in the origination, acquisition, and packaging for sale and servicing of equipment leases. As COO, Vincent was responsible for the day-to-day workings of the various operations in addition to building consensus and coordinating the overall sale of the business through bankruptcy that involved the final settlement with the various constituents in the case.
  • Served as the exclusive financial advisor to Kellstrom Industries, Inc., a publicly held aviation parts after-market distributor that was severely impacted by the events of September 11, 2001. The case involved the restructuring of the company’s Senior Revolver (that included 15 bank participants); Senior Subordinated Debt and publicly traded high-yield bonds. Vincent led the restructuring efforts, which included the structuring, negotiating and the eventual reaching of consensus with the various constituents through a series of forbearance agreements that covered a five-month period, to allow the company to find a “stalking horse” and conduct an auction through a pre-arranged bankruptcy. The §363 process resulted in the “stalking horse” pre-empting the other bidders by raising its initial price by 10% and a final settlement being finalized with the sub debt holders, the public bondholders and the unsecured creditors. The company emerged from bankruptcy in fewer than 120 days as a privately owned company, with the existing management running the business and having a sizable equity position in the new company.

PROFESSIONAL BACKGROUND

Before joining Phoenix, Vincent was Senior Vice President of Finance and Administration and CFO of a holding company with operating subsidiaries in contract operations, manufacturing and the licensing of proprietary technology to sub-licensees throughout the United States and Canada; served as Senior Vice President and COO of a company in the manufacturing and distribution of building products and CFO of a group of companies involved in steel processing and trading; and spent nearly 15 years in banking where he held various positions in corporate finance, investment banking, corporate lending and asset based financing wherein his engagements involved recapitalizations, leveraged/management buy-outs, acquisition financing, divestitures and advisory roles in overall capital restructuring. He also held international banking positions at Wachovia Bank, where he was General Manager of Wachovia’s New York office, and at Bank of America.

EDUCATION / AFFILIATIONS

Vincent holds an MBA from Fordham University, where he majored in Corporate Finance, and a B.S. from Pennsylvania State University, where he majored in Finance and Economics. He is also a member of the Turnaround Management Association and the Association for Corporate Growth.

 

vincent j. colistra

Contact Information

Office Locations: Philadelphia & Ft. Lauderdale
 

Office: (610) 358-4700

Fax: (610) 358-9377

Mobile: (215) 275-7110


Email:
vcolistra@phoenixmanagement.com

vCard: VincentJColistra.vcf