Form Technologies Enters into a Transaction Support Agreement for a Comprehensive Recapitalization to Strengthen its Balance Sheet and Extend Debt Maturities

CHARLOTTE, N.C., Jan. 28, 2021 /PRNewswire/ -- Form Technologies, Inc. ("Form Technologies" or the "Company"), a leading global group of precision component manufacturers, today announced its entry into a Transaction Support Agreement ("TSA") with certain of its stakeholders that would (i) extend the maturities of the existing $100 million Revolving Credit Facility and First Lien Term Loan to April 2025 and July 2025, respectively, (ii) purchase the existing Second Lien Term Loan, which combined with a paydown of the First Lien Term Loan would eliminate approximately $240 million of funded debt, and (iii) pay down a significant portion of the outstanding Revolving Credit Facility balance. Including the Revolving Credit Facility paydown, the transaction is anticipated to reduce approximately $300 million of debt. The transaction will be facilitated by a $300 million investment in new preferred equity from the Company's existing shareholders and a consortium of investors, including funds managed by the Private Equity Group and Credit Group of Ares Management.

Commenting on the announced transaction, Keith Weidman, the Company's Chief Executive Officer, said, "This recapitalization is a significant milestone for Form Technologies and provides the runway that will enable the Company to execute our strategic growth plan. These transactions demonstrate the strong support and continued confidence of our key stakeholders. In addition, the recapitalization deleverages our balance sheet and improves the Company's liquidity position by eliminating approximately $240 million of debt. Importantly, as part of the recapitalization, our existing shareholders and others are investing $300 million of equity, demonstrating their strong belief in the business. The combination of our enhanced capital structure and the boost to our liquidity position will help enable us to make strategic investments across the business, execute on our profitable growth initiatives and, most importantly, continue to provide the precision engineered solutions to meet our customers' needs."

The Company has obtained support for the transaction from all of its Revolving lenders, lenders representing more than 70% of the Company's First Lien Term Loan, and lenders representing nearly 85% of the Company's Second Lien Term Loan. The closing of the transactions is conditioned on the satisfaction or waiver of certain conditions precedent, including finalizing all definitive documents and achieving certain participation thresholds which may be modified by the Company and the consenting lenders. 

Guggenheim Securities, LLC is serving as the Company's financial advisor, and Kirkland & Ellis LLP is serving as legal counsel to the Company.

About Form Technologies

Form Technologies is a leading global producer of precision-engineered solutions, providing customized components with complex geometries and tight tolerances that are critical to their customers' end-market products. The Company produces over five billion high precision components each year across a variety of proprietary processes leveraging its engineering expertise and global scale to solve customers' most demanding challenges.

Form Technologies operates 28 manufacturing facilities in 19 countries, with two additional sales offices and over 8,800 employees. Form Technologies is owned by a group of three private equity investors, consisting of Partners Group, a global private markets investment manager investing on behalf of its clients, Kenner & Company, and American Industrial Partners.

Forward Looking Statements

The Company has included statements in this report that constitute "forward-looking statements." As a general matter, forward looking statements are those focused on future or anticipated events or trends, expectations and beliefs including, among other things, the Company's expectations with respect to the transaction described herein. Such statements are intended to be identified by using words such as "believe," "expect," "intend," "estimate," "anticipate," "will," "project," "plan" and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon the Company's then-current expectations estimates and assumptions regarding future events and are applicable only as of the dates of such statements, and the Company undertakes no obligation to update them. Readers are cautioned not to put undue reliance on such forward-looking statements.

Contact: Taylor Topper, [email protected]

SOURCE Form Technologies, Inc.

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