Jenner & Block

Jenner & Block Helps Brown Jordan International, Inc. Complete its Financial Restructuring

Jenner & Block client Brown Jordan International, Inc. (“BJI”) today announced the completion of restructuring of its financial affairs.

As part of the restructuring, BJI, the Florida-based business engaged in the design, marketing, manufacturing and distribution of indoor and outdoor furniture, has obtained (a) a $50,000,000 cash (equity) infusion, and (b) new senior revolving, term and second lien facilities that are expected to lower BJI’s financing costs substantially.  In addition, virtually all of BJI’s $105,000,000 in senior subordinated notes have been exchanged for cash or equity.  With the support of its key stakeholders, BJI completed these restructuring transactions on a fully consensual basis without any disruption to business operations. 

BJI’s legal team included Jenner & Block Partners Jeff J. Marwil, Paul V. Possinger, Teri A. Lindquist, Edward J. Neveril, Michael T. Wolf and Geoffrey M. Davis.  Its financial advisors are Thane Carlston and Tom Carlson of Jefferies & Co.

"We are very excited to have completed our financial restructuring," Gene Moriarty, BJI's CEO, said.  "We believe that the restructuring will provide us greater financial flexibility that will enable us to achieve strong growth, product enhancements and continued profitability." 

Company counsel, Jeff J. Marwil of Jenner & Block said, "As a result of strong team effort among the company's management and professionals, plus the overwhelming support of the senior subordinated noteholders, BJI was able to complete its restructuring out-of-court, without the need for Chapter 11 relief."

The core of BJI’s restructuring is a $50,000,000 equity investment that has been provided by certain holders of the senior subordinated notes, in exchange for a controlling equity interest.  Holders of BJI’s senior subordinated notes received a minority equity interest in exchange for their notes.  A group of financial institutions led by LaSalle Bank National Association has funded a credit facility in the aggregate amount of $200,000,000, consisting of a senior revolver, a senior term loan facility and a second lien term facility.  With the proceeds of these financing sources, holders of BJI’s prior senior secured financing facilities, including its senior second lien notes, were paid in full, with interest.  Trade creditors were not affected by the restructuring, and BJI expects that it will continue to pay them in the ordinary course of business.  BJI expects to realize substantial savings as a result of the improved terms of its new financing. 

BJI has maintained and will continue to foster positive relationships with its customers, suppliers, lenders and employees.  BJI will continue to operate its facilities in the ordinary course of business and believes it has more than adequate liquidity and inventory to support its customers’ needs.  Gene Moriarty remains as BJI’s Chief Executive Officer, Vincent Tortorici remains as BJI’s Chief Accounting Officer and the current senior management team in each of BJI’s businesses also remains in place.