Thu 12/02/2021 11:26 AM
Share this article:
Strike is preparing to file chapter 11 bankruptcy to facilitate a sale of substantially all of its assets, according to sources.

The Woodlands, Texas-based contractor that provides construction and maintenance services to the energy sector projected adjusted EBITDA growth from $21.3 million in 2021 to $31.2 million in 2023, despite an expected 25% revenue decline to $530 million, according to a corporate document reviewed by Reorg. Capex is expected to increase to $10 million in 2023 from $6.6 million this year.

The infrastructure and integrity services segment, including pipeline inspection and maintenance, reported LTM revenue of $315 million, while the facilities and specialty services unit, including instrumentation, electrical and fabrication work, has LTM revenue of $521 million, the document shows.

The company has cut costs by reducing headcount as well as shrinking its leased equipment portfolio, and the cost-reduction efforts are continuing.

Strike is advised by White & Case, Opportune and Guggenheim Securities, and term lender American Industrial Partners is advised by Stroock & Stroock and Houlihan Lokey, as reported.

The $250 million L+800 bps term loan due November 2022 was quoted today at 90/92, according to a trading desk.

Strike and sponsor Mill Point Capital did not respond to requests for comment.

--Harvard Zhang, Patrick Fitzgerald
 
Share this article:
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2022 Reorg Research, Inc. All rights reserved.
Thank you for signing up
for Reorg on the Record!