Manufacturer of Fire Sprinklers

Phoenix serves as financial advisor in arranging, structuring, and negotiating the refinancing of a manufacturer of fire sprinklers.

The Client

The Company was a publicly traded $250 million manufacturer and distributor of Fire Sprinklers based in Pennsylvania.

The Challenge

Due to the effects of an allegedly defective product, a lawsuit from the U.S. Consumer Products Safety Commission, seven class-action law suits and lenders who had called its loans, the Company found itself distracted from its primary business and position in the marketplace. The Company’s share price plummeted from a high of $48 a share to $5.50 a share.

The Solution

Phoenix resolved the litigation with both the CPSC and with the seven class-action suits and refinanced a $110 million credit facility. Shortly thereafter, Phoenix negotiated and structured the sale of the Company for $30 per share to the Buyer, a six-fold increase in value.

Phoenix Capital

Primary Industry

  • Manufacturing

Secondary Industry

  • Metal Products

    Primary Services

  • Refinancing