#USA #Portland #financing #recapitalization #Oregon Tool

Oregon Tool, Inc. Strengthens Financial Position Through Strategic Refinancing

Oregon Tool, Inc., a global leader in professional-grade cutting tools for forestry, lawn and garden, agriculture, and concrete finishing, has announced a significant refinancing and recapitalization effort aimed at boosting liquidity and enhancing its capital structure. The transactions, completed on February 20, 2025, involve multiple financing agreements that will dramatically improve the company’s financial flexibility and operational efficiencies.

Overview of the Transactions

The refinancing strategy includes the successful closure of three advantageous financing transactions. This initiative gained support from a majority of the company's capital structure, with participation from 100% of revolving credit facility lenders, approximately 83% of existing term loan borrowings, and around 81% of existing unsecured noteholders. The expected outcome is a substantial liquidity infusion of roughly $150 million, alongside a reduction of more than $75 million in pre-transaction debt obligations.

On February 18, 2025, Oregon Tool’s newly formed subsidiary, Oregon Tool Lux LP, a Luxembourg-based entity, issued a new first lien term loan valued at about $156 million. This pivotal step was complemented by a successful exchange whereby lenders of the revolving credit facility traded their positions for a new first-lien revolving credit facility. In the following days, specific groups of lenders extended their loan maturities to October 2029, establishing a more favorable timeline for the company’s financial responsibilities.

The Financial Implications

The refinancing eliminates existing debt restrictions and consolidates Oregon Tool’s financial position, setting the stage for a long-term strategic growth trajectory. “This transaction positions the Company for long-term success and benefits our key stakeholders,” stated Terry Hames, President and CFO of Oregon Tool, Inc.

By reducing its debt and extending maturity dates, Oregon Tool now retains greater liquidity for operational needs and is poised to continue investing in innovative solutions and operational efficiencies. The infusion of cash reserves aids in fostering a sustainable growth strategy, allowing for advancements in product developments aimed at meeting increasing consumer demand.

Advisors and Legal Representation

Oregon Tool was advised financially by PJT Partners LP, with Milbank LLP serving as legal counsel for the company. Furthermore, Perella Weinberg Partners LP provided advisory services for the term loan group, while Lazard advised the crossholder group, ensuring comprehensive support throughout the refinancing process.

Conclusion

In summary, Oregon Tool, Inc.'s recent refinancing and recapitalization efforts represent a critical step in reinforcing its liquidity and optimizing its capital structure. These measures not only improve the company’s financial stability but also enhance its capacity for operational investments and service innovations. Oregon Tool’s strategic focus will continue to center on developing high-quality cutting tools that meet the specialized needs of industries across the globe.

For further information about Oregon Tool, visit www.oregontool.com.