Mackinac Partners

Case Studies

Capital Restructuring for New Growth in the Recreational Equipment Manufacturing Sector

Strategic Advisory/Interim Management/Restructuring/Transaction Advisory

PlayPower, Inc. is one of the world’s largest, fully integrated manufacturers and marketers of commercial playground systems and outdoor recreational equipment.  Headquartered in Charlotte, North Carolina and with manufacturing operations in Aneby, Sweden, Selby, England and Monett, Missouri, Playpower was facing declining sales and rising raw materials prices in 2010.

This led to declining EBITDA, key covenant breaches and financial distress for this leading global playground and recreation equipment manufacturing and sales company. So In August 2010, PlayPower engaged Mackinac Partners as a financial advisor and elected Keith Maib as interim CFO of the company. Maib and Mackinac Partners managed the Company’s financial operations through a forbearance period and complex restructuring negotiations.

With underlying issues still prevalent, Mackinac was able to mitigate their affect and consummate a consensual restructuring with its lenders to extend maturities and eliminate $145 million of debt while also securing $45 million of new working capital. In the restructuring, Apollo Investment Corporation acquired 100% of the Company’s common equity.

Subsequent to the completion of the restructuring, Maib joined several Apollo professionals on the Board of PlayPower and shortly thereafter was asked to assume overall responsibilities as PlayPower’s Chief Executive Officer. Maib managed PlayPower’s manufacturing, sales and distribution operations as well as the realignment of PlayPower’s executive management, including the recruitment and hiring of a new Chief Executive Officer and several key executives. Maib continues to serve PlayPower as an active member of its Board of Directors.

Greg Schreiber, PlayPower’s CEO: “Our new capital structure, combined with healthy financial performance and a reduced cost structure lay the foundation for long term growth and provides PlayPower with the operating and financial flexibility to support our business strategies and future growth opportunities. The Mackinac team provided strong leadership and technical know how and were integral to our successful completion of this restructuring.”

Mackinac Partners and Playpower were recognized by the M&A Advisor for “Industrial Manufacturing Deal of the Year”, “Middle Market Deal of the Year” and “International Restructuring Deal of the Year” in 2012. Mackinac Partners also received an Atlas Award for “Middle Market Turnaround of the Year” for the successful restructuring of Playpower.