CROSSMARK Holdings, Inc., a leading sales and marketing services company, today announced that it has completed an exchange offer with consent from 100% of its lenders that provides the CROSSMARK group (“CROSSMARK”) with the strongest balance sheet and capabilities of any national service provider and the long-term capacity to invest in growth strategies for clients and customers. As a result of the exchange offer and related transactions, CROSSMARK has reduced its total long-term debt by approximately 75%, resulting in an adjusted debt leverage ratio of approximately 3.0x. The transaction was completed on July 26, 2019.
CROSSMARK will continue to provide uninterrupted, differentiated services, exceeding client and customer expectations through passion, innovation and collaboration and building meaningful bridges to growth.
“Over the last few years, we have transformed CROSSMARK to aggressively grow our core business and drive value, and this transaction represents the next phase in that process,” said Steve Schuckenbrock, Chief Executive Officer of CROSSMARK. “Through this transaction, CROSSMARK now has the strongest balance sheet among national sales and marketing agencies, the financial flexibility to further invest in our leading capabilities and offerings and new ownership that is aligned with our objectives. As a result, our talented employees will be even better positioned to leverage our world-class technology, data and insights to build on our existing client and customer relationships and deliver long-term value to all of our stakeholders.”
Pursuant to the exchange offer, the Company has exchanged (i) $400 million of outstanding first lien term loans for 100% of the new equity of CROSSMARK, subject to dilution by certain warrants issued as described below and a new management incentive plan, and $75 million of new debt; and (ii) $90 million of second lien term loans for warrants entitling holders, upon exercise thereof, to receive 7.50% of the equity of CROSSMARK, subject to dilution. In connection with closing the exchange offer, CROSSMARK has also entered into a new $75 million credit facility to provide additional working capital and letters of credit.
The exchange offer has been consummated pursuant to the terms of the Restructuring Support Agreement that CROSSMARK Holdings, Inc. and certain of its affiliates entered into with its lenders on December 31, 2018, as amended from time to time.
CROSSMARK is a leading sales and marketing services company that provides growth solutions for consumer-branded suppliers and retailers. For more than 100 years, CROSSMARK has helped the world’s most powerful brands achieve their business objectives across major classes of trade. Expertise includes Headquarter Sales, Retail Merchandising, Retailer Solutions, Shopper and Consumer Engagement, In-Store Events, Experiential Marketing, Shopper Marketing, In-Store Data Collection & Field Intelligence, and Analytics & Insights.