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All Case Studies
Nº 009

From Multiple Defaulted Loans to a Single Partner

Financing Breakdown

Risks

With multiple prior defaults, the lender would likely force insolvency.

Scenario

Turnaround

Industry |

Utilities

Key Challenges

Multiple banks in special loans
Lawsuit outstanding
Project-based revenue

Loan Type

Senior Term Loan

Outcomes

Consolidated Financing
One senior lender replaced a complex capital stack, reducing complex financial reporting and friction.
Lower Capital Service
Despite higher rates, the structure significantly cut two-year cash costs, freeing funds for operations.
Reporting Simplified
Requirements were streamlined, saving CFO time and making financial reporting cleaner.

Lender Type

Private Credit
Bank

Result |

Capital Stack Recapitalized
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Overview

From Multiple Defaulted Loans to a Single Partner

Diamond Willow secured a $40 million senior term loan that recapitalized the entire capital stack with one lender.

Our client is a Canada-wide power infrastructure group. Through multiple operating entities, the company delivers transmission and distribution work, substations, underground cable, testing and commissioning, and tracked vehicle manufacturing, with a strong safety and quality focus.

After a large family office saw how Diamond Willow operated when facilitating the capital for a private equity purchaser of one of their entities, the sponsor asked us to find a creative solution to this operating company stuck in special loans at several banks. With a lawsuit in play, customer concentration, and project-driven cash swings, we built a lender-ready case that unified credit under one senior partner, simplified reporting, and front-loaded cash flow relief to restore working capital.

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The Challenges

  • In special loans at multiple banks and defaulted on a private lender.
  • Lawsuit outstanding.
  • Project-based revenue with concentration risk.

Risk Mitigants

  • New management team installed over the last two years.
  • Two consecutive years of positive EBITDA.
  • Strong sector tailwinds and robust pipeline.
  • Guarantee from a high-net-worth investor.

The Outcome

We obtained a new senior term loan that materially lowered debt service costs in the first two years, consolidated all loans into the holding company, and made financial reporting easier relieving strain on the finance team.

$40M

senior term loan.

1

senior lender post-close.

2 years

reduced debt service.
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