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Heritage Capital Group Announces Successful Debt Restructuring and Refinancing for Lee & Cates Glass, Inc.

NOVEMBER 2014 - Heritage Capital Group is pleased to announce a successful debt restructuring and refinancing for Lee & Cates Glass, Inc. Lee & Cates is a full service glass supplier to the consumer, commercial, and residential building markets. The Heritage Capital Group team of Matt Laffey and Howard Serkin initiated the transaction and negotiated the restructuring and refinancing.

Lee & Cates is one of the largest independent glass companies in the southeastern United States. Headquartered in Jacksonville, the company has a network of 13 retail stores throughout northern Florida and southern Georgia, as well as a wholesale flat glass fabrication facility.  Lee & Cates is a family owned business that has served the First Coast for four generations.

The recession caused a dramatic reduction in construction and the demand for glass. The management of Lee & Cates shrunk their footprint and cost structure accordingly, but realized a more comprehensive reorganization would be needed for the company to thrive in a slowly-recovering economy.  

Accordingly, Lee & Cates engineered a dramatic improvement in internal operations, shortened lead times, reduced waste, improved customer service, and recaptured double-digit growth rates as a result. 

In addition to these measures, a new capital structure was needed that would provide the company with the resources and flexibility to manage continued strong growth.  Tom Lee III, CEO of Lee & Cates turned to Heritage Capital Group to assist the company in this complex process.  Tom described the decision, "We knew that deep knowledge of the capital markets and proven relationships with lenders would be vital to achieve a complex debt restructuring in a short period of time" Tom explained. "Heritage  was critical to that success. They found us a strong financial partner who believes in our team, the sustainability of our reengineering effort, and, most importantly, our future. Their contacts, communication, guidance, and in-depth analysis resulted in multiple options that allowed us to maintain control of our company and its future.”

Matt Laffey, the Heritage principal who led the transaction, stated,   "Despite tremendous liquidity in the capital markets at the moment, cash-flow lending for smaller mid-market companies is still difficult to find, especially for businesses with any exposure to the construction and renovation markets.  We needed to develop multiple structures with different types of capital, all on a very tight time frame for closing.  The transaction resulted in a structure uniquely suited for manufacturing companies located in urban environments - and one which could be helpful for many businesses on the First Coast." 

The final structure involved creating a new corporate entity for certain manufacturing assets that qualified for specialized tax-credit financing.   

Heritage Capital Group provides a range of investment banking services, including buy-side and sell-side M&A advisory work, business valuations, litigation support, exit planning, value enhancement and strategic advisory services, including restructuring and reorganization consulting.   Heritage Capital Group is a FINRA regulated broker-dealer and a founding member of M&A International Inc., which extends their capabilities to match capital with opportunities on a global scale.


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