Michael J. McCauley
Director
Years with Phoenix: 1
Years of Turnaround Experience: 7
Office Location: Philadelphia, PA
Michael J. McCauley joined Phoenix Capital Resources as a Director in November 2006, and is a seasoned financial executive with 15 years of demonstrated achievement in a broad array of complex transactions and challenging workout situations. He is a skilled negotiator who is quick to assess a situation, develop practical strategic alternatives, build consensus, and implement an effective action plan to preserve and enhance value.
Mr. McCauley has worked with manufacturing, distribution, franchising, and service clients in both the public and private sectors and in a wide spectrum of industries in the U.S. and Canada. Professional areas of expertise include business and financial assessments; capital structuring and cash flow modeling; complex negotiations; dispute resolution; asset valuation and recovery maximization.
During his career, Mr. McCauley has managed due diligence and structured and negotiated new financing transactions for acquisitions, expansions and turnaround situations with total loan commitments in excess of $250 million. He has managed various portfolios of diversified syndicated loans, senior loans, subordinated mezzanine loans, equipment leases, factoring and floorplanning facilities, and various public and private equity investments, including warrants, preferred stock and common stock.
Mr. McCauley has structured and negotiated hundreds of forbearance agreements, financial restructurings, recapitalizations, and settlements both in and out of court. He also managed the divestitures of companies, the sale of specific assets, and liquidations under Chapter 11 and Chapter 7 bankruptcies. Overall, Mr. McCauley has worked with more than 150 middle market companies with an aggregate loan and equity value of more than $500 million.
Phoenix Capital Resources Experience
- Recapitalization
- Refinancing
- Expansion/Growth Financing
- Out-of-court Bankruptcy Auctions
- Divestitures
- Balance Sheet Restructuring
Selected Capital Advisory Experience
As a new member of the Board of Directors of a $10 million electronics distributor, Mr. McCauley conducted due diligence and reviewed financial performance and forecasts to develop a valuation for the company. He assisted the Board in evaluating offers to purchase the company and approved management incentive compensation changes to facilitate a sale. A strategic buyer was identified to purchase substantially all of the assets with a valuation markedly higher than other offers.
As an interim manager, Mr. McCauley prepared due diligence materials for potential purchasers of a $20 million tire and gasoline retail operation and identified five parties interested in making bids, including both financial and strategic bidders. All five parties made bids and a closing with one party is pending.
Prepared comprehensive due diligence package on a $140 million 70-store restaurant chain to evaluate recovery values for its senior lender both in and out of bankruptcy. Negotiated a discounted payoff between the company and the lender that was favorable to both sides.
Negotiated a series of waivers, amendments and forbearance agreements between a $45 million food processor and its senior lender over a three-year period to avoid a bankruptcy filing and facilitate a full payout of the lender’s $11 million revolving loan and $4 million mezzanine loan
Approved, structured, and negotiated a $31 million senior revolving credit and term loan facility to effectuate a management buyout of a $33 million paper shopping bag manufacturer
Approved, structured, and negotiated a $22 million credit facility, including a senior revolver and various senior and junior term loans, to refinance existing debt of a $30 million manufacturer of fiberglass packing equipment and fund an add-on acquisition of a $20 million manufacturer of bulk material handling equipment
Industry Experience
- Airline
- Apparel
- Electronics
- Food and Beverage
- Gaming
- Financial Services
- Healthcare (Assisted Living)
- Hotel
- Information Technology
- Jewelry
- Leasing
- Machinery
- Paper Products
- Personal Care Products
- Printing
- Publishing
- Restaurants
- Resort (Time Share)
- Retail
- Steel
- Telecommunications
- Transportation (Trucking)
Prior Experience
Prior to joining Phoenix Capital Resources, Mr. McCauley was a Vice President and Portfolio Manager with FINOVA Capital Corporation. During the last six years with the company, he assisted with the orderly liquidation process of its $7 billion diversified portfolio, following its own restructuring efforts in 2000 and bankruptcy reorganization in 2001. While at FINOVA, he held senior positions in loan underwriting and portfolio management and assisted with the office closures and wind downs of several locations. He held executive-level positions in two operating companies that FINOVA took control of through debt-to-equity conversions. He also served on an Official Committee of Unsecured Creditors in a Chapter 11 liquidation.
Mr. McCauley began his career with CoreStates Bank, N.A. (now Wachovia), in Philadelphia PA. He completed the Wholesale Bank Training Program working in middle market lending, the national commercial finance unit, and the cash management group. He was recruited from the program early to work in the national commercial finance unit, which specialized in asset-based participations with Congress Financial Corporation.
Education/Affiliations
Mr. McCauley earned his Bachelor of Arts from Dickinson College in Carlisle, PA, with a double major in Economics and Policy & Management Studies. He studied for a semester at American University in Washington, D.C. under the Economic Policy Semester Exchange Program.
He is a member of the Turnaround Management Association and the Association of Insolvency and Restructuring Advisors. Mr. McCauley is registered with the National Association of Securities Dealers and holds his Series 7, Series 24 and Series 63 licenses. He is in the process of becoming a Certified Insolvency and Restructuring Advisor (“CIRA”).
Contact
- (610) 358-4700 phone x173
- (610) 358-9377 fax
- (610) 766-1150 cell
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