Restructured Balance Sheet: Short-term Financing Replaced with Long-term Capital
Industry: Construction
Company Profile: Bruce S. Evans is a leading provider of civil construction, golf course construction, theme park and themed facade construction
and related activities. The company carries on business directly and through two subsidiaries, Fowler Construction Co. Ltd. and Forrec Construction Inc.
NewPoint’s Role: NewPoint was retained as exclusive financial advisor to improve its capital structure to match the cyclical nature
of its cash flows. NewPoint’s role included an assessment of the situation, development of an appropriate financial strategy, raising of the capital
and playing a key role in all negotiations and documentation leading to close.
Transaction Snapshot: Given the cyclical nature of the company’s operations and the substantial operating leverage it utilized,
NewPoint implemented a solution that provided for the use of longer-term patient capital that was collateralized against the fixed asset base.
This solution immediately relieved the company of its liquidity issues and provided the catalyst for the execution of a growth strategy.
