We are currently acquiring a 75 year old, aerospace machining company with a $125 million backlog that has substantial potential for growth and profitability. Due to an accelerated time line that the current bank has requested in exchange for a settlement well below asset value, we are seeking options to secure $7m to settle a $10.3m secured debt and provide minimal working capital (this is the only debt other than trade debt). It will be 100% secured with tangible assets. These assets include estimated $4 million in accounts receivable, estimated $4 million in raw materials, a prime industrial manufacturing space of 75,000 square feet with recent sale lease back offer of $3.3m, and recent appraisal of machinery and equipment valued at $4.7m for OLV. *We anticipate pursuing the sale-lease back arrangement, aiming to efficiently pay down the $7 million debt to $3.7 million at closing or within the first 30 days after acquisition. Pingora is a team of award winning turnaround experts across disciplines with deep expertise in aerospace mfg. Our team and board has over 13 successful aerospace machining turnarounds, collectively valued at over $900 million to include receiving the turn around of the year award for a similar operation that now produces $24m sales and $3.8m EBITDA. Our active board member is a 30 year global aerospace turnaround expert that is currently leading 7 aerospace mfg products operations, all of which were distressed before acquisition. Our selected full time, local operator is a seasoned aerospace machining expert with over 28 years of experience, particularly in executing successful turnarounds with very similar aerospace operations. We have a very clear and proven path to success and the post-acquisition financials reflect a robust EBITDA of $3.4+ million 1st year for 2024 on $19.9m in sales (backlog orders already set for production). The investment risk is mitigated through the anticipated complete return of secured capital and we have modeled at 12% interest within a conservative 36-month timeline, but are flexible on terms. We also anticipate offering a non control equity stake going forward as part of the consideration due to our accelerated timeline requirements and future upside. We anticipate exiting within 36 months and have identified potential interested parties. Aerospace machining operations with an EBIDTA over $3million trade for multiples ranging from 8 to 11X. Please email me at --@----.com if you are able to help as we are actively pursuing options.
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