AGG client Horizon PCS was in need of a substantial debt-equity financing to fully fund its business plan and to complete the acquisition of additional territories for its wireless telecom business. AGG assisted Horizon in preparing a prospectus and related documents for an initial public offering of common stock. Just as that process was complete, the IPO market collapsed and Horizon was faced with the daunting challenge of finding substantial alternative financing sources in time to meet a deadline.
Working with AGG’s telecom, securities and banking teams, Horizon pursued three complimentary financing sources. First, Horizon sought to raise $125 million in private equity from one of the country’s leading private equity firms. Second, Horizon sought to obtain a $175 million high-yield bond deal, underwritten by a leading investment banking firm. Third, Horizon pursued a $125 million senior secured credit facility with a national bank. For there to be a successful financing, each of the three financing deals was contingent upon the closing of the other two, and all three transactions had to close simultaneously.
Four days prior to the deadline, AGG assisted Horizon in simultaneously closing all three transactions for proceeds of approximately $525 million. With the funds, Horizon was in a position to fund its acquisition obligations and its business plan.