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Allright
Corporation
Transaction Overview
Transaction type: Corporate acquisition
/ Private placement
Total Transaction Size: $235 Million
Transaction Background
With 1,250 parking locations in the
nation, Houston, TX-based Allright Parking was the largest parking garage
operator in the country when owner Nedinco made the company available
for sale by appointing Goldman Sachs to sell the company. The sale was
conducted on a competitive bid basis and included bids from groups backed
by many major "Wall Street" firms.
Transaction Summary
CBA was initially brought into the
transaction as a financial advisor to structure the transaction and provide
acquisition financing. The winning bidder retained CBA as a financial
advisor to structure, and provide a debt commitment to the transaction.
Through extensive analysis and due diligence, CBA determined that the
most cost effective and profit maximizing structure was one which utilized
a combination of equity and corporate debt.
After the CBA team ultimately won the bid, the original deal sponsor failed
to raise the necessary equity. CBA then arranged $66 million of equity
from Apollo Real Estate Advisors and Aldrich, Eastman and Waltch to purchase
the company, and secured over $200 million in debt financing (including
a $75 million line of credit for future acquisitions) from Credit Suisse
First Boston.
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