CROSSMARK in Restructuring

Cleary Gottlieb represented CROSSMARK Holdings Inc. and its affiliates (CROSSMARK), a leading sales and marketing company, in its successful out-of-court restructuring.

Pursuant to an exchange offer, which was completed on July 26, 2019, CROSSMARK exchanged (1) $400 million of outstanding first-lien term loans for 100% of CROSSMARK’s new equity (subject to dilution by warrants to be issued in connection with the restructuring and a new management incentive plan), and $75 million of new debt; and (2) $90 million of second-lien term loans for warrants entitling holders, upon exercise thereof, to receive 7.5% of CROSSMARK’s equity, subject to dilution. In connection with closing the exchange offer, CROSSMARK also entered into a new $75 million credit facility to provide additional working capital and letters of credit. The transaction represents a 75% reduction in CROSSMARK’s financial indebtedness.

Cleary represented CROSSMARK in all aspects of the transactions, including entry into a new asset-based loan revolver facility.