[UPDATE: May 18, 2023]
The Industry and Company
An aerospace components manufacturer and its private equity sponsor were interested in financing production equipment to expand manufacturing capabilities. The business initiative was estimated to save approximately $20 million annually.
The company’s financials were severely impacted by COVID-19 and related travel disruptions. The company was levered 13x and had limited liquidity as result of its COVID challenges and the operation of its business in a cyclical industry.
Atalaya structured a $20 million operating lease transaction to enable the company’s equipment upgrade initiative and be non-disruptive to its existing capital structure.