AFGlobal Completes Recapitalization, Reduces Debt by $680 Million

by: AFGlobal

Company Receives $120M in New Capital to Support Future Growth

HOUSTON, TX, May 24, 2017 -- AFGlobal Corporation announced today that it has completed a recapitalization transaction, which as previously disclosed, was effectuated through a filing with the courts. The Company's pre-packaged recapitalization reduced AFGlobal's funded debt by approximately $680 million. Also as part of this transaction, AFGlobal's new ownership group-led by certain funds managed by The Carlyle Group, Eaton Vance Corp., First Reserve, and Stellex Capital Management LP-and other stakeholders have committed $120 million of new capital to the Company.

"This recapitalization is very positive news for the company, our customers, suppliers, business partners and employees," commented Curtis Samford, President and Chief Executive Officer of AFGlobal Corporation. "With a strengthened balance sheet and substantial liquidity, we are better positioned to efficiently develop and grow our next-generation technologies supporting the next phase of drilling and production in the oil and gas industry."

The new ownership group issued the following statement, "We are very excited to partner with the management of AFGlobal in this next phase of the Company's strategic plan. AFGlobal's leading market and technology position in such markets as Managed Pressure Drilling and Pressure Pumping provide for a truly differentiated offering, supporting their customers with best-in-class products and services."

The court process, which was completed in 18 days, did not and will not impact the Company's customers, suppliers or employees. Business was conducted in normal course during this restructuring period. 

Kirkland & Ellis LLP, Lazard Frères & Co. LLC, and Alvarez & Marsal served as the Company's legal advisor, financial advisor, and restructuring advisor, respectively.

AFGlobal is an oil and gas OEM specializing in technology, products, and services with fully-integrated manufacturing capabilities to clients around the world. We align well-established precision engineering with industry-leading innovation. AFGlobal also offers a broad range of manufacturing capabilities to industrial segments, offering a variety of both highly-engineered and general forged products, as well as complementary aftermarket services. Headquartered in Houston, Texas, the Company delivers value through more than 20 facilities worldwide.  www.afglobalcorp.com.

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