Solvency Opinion – Dividend Recapitalization Transaction

Stout served as the exclusive financial advisor to a billion dollar world leader with more than 125 years of experience in the carbon and graphite industry. Stout was engaged to advise the board of directors in connection with a dividend recapitalization transaction where it raised new debt and repaid existing debt in addition to making a dividend to its shareholders. The company was restructured by its private equity sponsor to enhance profitability and business stability.

Our analysis primarily relied on the projected cash flows of the company, and included the analysis of trading multiples and recent mergers and acquisitions of similar companies. We determined the ability of the company to fund its continuing operations and to meet debt service obligations of the post-transaction capital structure. We delivered an opinion to the board of the company, providing information to enable the board to recommend proceeding with the transaction.

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