Thu 12/02/2021 11:26 AM
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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
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