Houghton International Inc.
On December 15, 2005, Houghton International Inc. (“Houghton”)
announced it successfully closed new senior secured revolver and term
loan facilities totaling $115 million. Initial proceeds were used to repay
substantially all of the company's existing senior and subordinated
indebtedness. Watch Hill Partners acted as Houghton's exclusive financial
advisor on this strategic refinancing.
The refinancing significantly reduced Houghton's overall borrowing
costs and streamlined the company's capital structure by eliminating both
expensive subordinated debt and significant asset encumbrances.
Additionally, the unused borrowing capacity of the new facilities
provided the company with enhanced financial flexibility. In a competitive
process managed by Watch Hill, JP Morgan Securities was selected
to act as Lead Arranger and Bookrunner for the transaction. Proposed
terms and proposed transaction costs improved significantly during the
course of the Watch Hill-run process.
Since 1865, Houghton International Inc. has been serving the
metalworking, automotive and steel industries, along with a variety of
other markets, with the development and production of specialty
chemicals, oils, and lubricants. Headquartered in Valley Forge,
Pennsylvania, privately-held Houghton maintains manufacturing and
research facilities throughout the world. In 2005, Houghton's global
revenues exceeded $425 million. Unequaled in the industry for
technical support, Houghton's unique FLUIDCARE® chemical
management program provides customers new ways to save on overall
processing and disposal costs, and increase processing performance.
Houghton International continues to expand its Pacific Rim operations
and grow its worldwide facilities.
Subsequent to completing the transaction, Houghton retained Watch
Hill for a follow-on assignment, as its ongoing exclusive investment banking
advisor.
On March 31, 2006, Houghton International Inc. (“Houghton”)
announced the completion of a tender offer for 550,000 shares of its common
stock. The company arranged the tender offer in order to provide
liquidity to some of its existing non-management shareholders. Watch
Hill Partners acted as Houghton's exclusive financial advisor on this
transaction.
As a privately-held company which has been in operation for more than
140 years, Houghton occasionally seeks a liquidity mechanism for its
shareholders. Watch Hill conducted a process to indentify a financial
sponsor that would be a valuable long-term investor in Houghton. After
meeting with a select number of potential investors, the company selected
GSO Capital Partners (“GSO”), a New York based investment management
firm to establish a minority investment in Houghton.
The tender offer was part of a broader, strategic recapitalization of
Houghton advised on by Watch Hill. In December 2005, Houghton
refinanced substantially all of its existing senior and subordinated debt.
The refinancing significantly reduced Houghton's overall borrowing
costs and streamlined the company's capital structure. Additionally, the
unused borrowing capacity of the new facilities provided the company
with enhanced financial flexibility.
Since 1865, Houghton International Inc. has been serving the
metalworking, automotive, and steel industries, along with a variety of
other markets, with the development and production of specialty
chemicals, oils, and lubricants. Headquartered in Valley Forge,
Pennsylvania, privately-held Houghton maintains manufacturing and
research facilities throughout the world. In 2005, Houghton's global
revenues exceeded $425 million.
Subsequent to completing the recapitalization, Houghton retained
Watch Hill as its ongoing exclusive investment banking advisor.
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