Senior Managing Director & Shareholder
Years of Investment Banking Experience: 12
Office Location: Chadds Ford, PA
Office Phone: (610) 358-4700
Mobile Phone: (610) 766-1150
Email: mmccauley@phoenixcapitalresources.com
Mr. McCauley is a proven leader with 20 years of successful accomplishments in a broad array of complex transactions. He provides hands-on transactional leadership for middle market companies that are in need of capital, financial restructuring and/or merger and acquisition assistance. Overall, Mr. McCauley has worked with more than 200 middle market companies with an aggregate loan and equity value of more than $1.5 billion.
Mr. McCauley has worked with manufacturing, distribution, franchising, and service clients in both the public and private sectors and in a wide spectrum of industries in the U.S. and Canada. During his career, he has managed due diligence and structured and negotiated new financing transactions for acquisitions, expansions and turnaround situations with total loan commitments in excess of $500 million. Mr. McCauley has structured and negotiated more than a hundred forbearance agreements, financial restructurings, recapitalizations, and settlements both in and out of court. He also managed the divestitures of companies, the sale of specific assets, UCC Article 9 sales, bankruptcy 363 sales, and liquidations under Chapter 11 and Chapter 7 bankruptcies.
Selected Investment Banking Experience
Obtained a $40 million senior credit facility for a manufacturer of corrugated steel and plastic drainage pipes sold into various constructions markets, including commercial real estate, residential housing, and municipal highway project markets. Negotiated a 5 year renewal from the existing bank group which provided for a $3.5 million distribution to subordinated note holders in exchanged for debt forgiveness and a lower interest rate. The senior bank facility, which closed in April 2011, included a large term loan supported by machinery and equipment and real estate and also included a cash flow loan above the value of the assets. The terms of the senior bank loan provided for satisfactory covenants and thresholds to allow significant payments on subordinated debt going forward based on annual excess cash flow. As a result of the refinancing and restructuring, the Company is well positioned for growth, profitability, and increased value for all constituents in the future.
Served as Chief Restructuring Officer for a $30 million manufacturer and importer of wood and iron staircase parts suffering severe cash losses and significant pressure from its senior lender. Simultaneous with the wind down of the manufacturing facility, an expedited and full sale process was run resulting in the successful negotiation of complicated multi party agreements to obtain a new loan from the existing lender, sell the going concern business assets to a private equity group, and sell the remaining assets through a guaranteed sale to a liquidator. The sale closed in June 2010 just days after the expiration of the 60 day WARN notice, key vendor relationships were restored and key employees were retained. The transaction was effectuated through a UCC Article 9 sale priced at multiple of projected positive cash flow that paid off all secured debt and limited claims against the former public company owner. The Company became profitable again several months after the closing.
Served as Co-Chief Restructuring Officer for a $260 million fabricator and value added distributor of architectural glass and aluminum products serving to commercial and residential construction markets across the U.S. The Company provides a comprehensive line of products including insulated, tempered, mirrored, laminated, and decorative glass as well as aluminum extrusions and windows. Phoenix guided Arch through a bankruptcy 363 sale that resulted in a final offer that was 34% higher than the original pre-bankruptcy bid and 114% higher than the worst case net liquidation recovery values for the senior lenders considering liquidation. The bankruptcy 363 sale process was completed on January 31, 2010, just 65 calendar days after the bankruptcy filing and resulted in preserving more than 1,500 jobs.
Served as financial restructuring advisor to a fully integrated $400 million manufacturer of vinyl and aluminum windows and doors, screens and related products serving the residential and commercial markets in the U.S. Assisted the shareholders and senior management team in successfully negotiating for more time through an extended forbearance agreement with its existing senior lenders and securing and closing a $100 million asset based credit facility with a new lending group. The credit facility closed in April 2009 and included a significant term loan on machinery and equipment and real estate. Served as an interim financial advisory resource to create financial forecasts, lead weekly meetings with presidents of 7 business units and the shareholders of the Company, interface with the existing and new senior lenders, manage the bank due diligence process and oversee the bank audits and appraisals resulting in confirmation of $23 million of cash flow addbacks and creating $6 million of additional borrowing availability. Renegotiated 4 real estate leases resulting in $1 million of savings over 2 years and re-negotiated an airplane lease that had a $3 million balloon payment and a $1 million collateral deficiency. Preserved the value of the Company and positioned the business for improved future earnings.
Servied as exclusive investment banker to the largest U.S. manufacturer of hot-forged scissors and shears for a wide variety of markets. Obtained a premium purchase price in exchange for allowing a “pre-emptive” bid prior to starting the competitive sale process. The final sale price represented a very attractive multiple of adjusted EBITDA as a result of business and cultural synergies between the two companies. Overcame significant challenges related to known environmental issues with owned real estate.
Prior Experience
Prior to joining Phoenix Capital Resources, Mr. McCauley was a Vice President and Portfolio Manager with FINOVA Capital Corporation. During the last six years with the company, he assisted with the orderly liquidation process of its $7 billion diversified portfolio, following its own restructuring efforts in 2000 and bankruptcy reorganization in 2001. While at FINOVA, he held senior positions in loan underwriting and portfolio management and assisted with the office closures and wind downs of several locations. He held executive-level positions in two operating companies that FINOVA took control of through debt-to-equity conversions. He also served on an Official Committee of Unsecured Creditors in a Chapter 11 liquidation.
Mr. McCauley began his career with CoreStates Bank, N.A. (now Wells Fargo), in Philadelphia PA. He completed the Wholesale Bank Training Program working in middle market and asset based lending, including loan participations with Congress Financial Corporation.
Education/Affiliations
Mr. McCauley earned his Bachelor of Arts from Dickinson College in Carlisle, PA, with a double major in Economics and Policy & Management Studies. He studied for a semester at American University in Washington, D.C. under the Economic Policy Semester Exchange Program.
He is a member of the Association for Corporate Growth, the Turnaround Management Association and the Association of Insolvency and Restructuring Advisors. Mr. McCauley is registered with the Financial Industry Regulatory Authority (FINRA) and holds his Series 7, Series 63, Series 79 and Series 24 licenses.