Third Eye Capital
Tel: (416) 601-2270
Fax: (416) 981-3393
Email Third Eye Capital

Brookfield Place
Bay Wellington Tower
181 Bay Street, Suite 2830
Toronto, Ontario, M5J 2T3

Case Studies

Case Studies

< Back to article list

Coffrages Synergy $27 Million Senior-Secured Credit Facility.

19 Feb Coffrages Synergy $27 Million Senior-Secured Credit Facility.

Posted at 18:52h in Case Studies by

Here’s what we saw.

Coffrages Synergy (Coffrages) is a recognized and highly sought-after construction leader in Quebec for concrete foundations and versatile structural forms. It is led by an ambitious, result-oriented team motivated to grow beyond private-sector Quebec contracts. Others didn’t see it. We did.

Transaction Overview

Third Eye Capital provided Coffrages with a larger secured financing facility when the company’s bank had starved it of growth capital and threatened possible remedial action due to covenant breaches caused by quick amortizing equipment leases. Coffrages was concurrently in the process of obtaining regulatory approval in order to bid on public contracts. Coffrages needed a partner who would not only provide capital to support its growth plan but help effect a financial and operational turnaround to restore confidence with various skeptical stakeholders.

Opportunity

Founded in 2000 and based in Lavaltrie, Quebec, Coffrages is a recognized construction leader in concrete foundations and versatile structural forms. It is one of only three formwork contractors in Quebec, which owns and is experienced in the use of PERI Formwork Systems, specialized equipment for high-rise buildings and complex projects. Coffrages was familiar with Third Eye Capital’s hands-on experience in the construction services industry and sought its help to reorganize Coffrages, refinance bank debt and equipment leases, and to provide growth capital. In May 2016, with TEC’s guidance, Coffrages undertook a significant reorganization to maximize the possibility of regulatory approval. Such regulatory approval would provide COFF a growth boost, increase market confidence, and attract investors and traditional banks for future financings. We saw a company with a loyal, top-tier customer base, a growing contractual backlog, and a reputation for quality and timely project completion. Third Eye Capital was the perfect partner to help Coffrages turn perceived risks to actual opportunities.

Approach & Outcome

We took a hands-on approach to recognizing impediments to regulatory approval and caused a structural separation of the primary operating business from other affiliates, creating a new independent corporate entity that could meet regulatory hurdles. We also used our experience to understand Coffrages’ growth pains and tailored our facility to release cash from working capital and inefficient equipment leases. We put in strict internal controls, implemented powerful tracking tools, and helped management optimize operating cash flows. We designed processes to improve collections and structured a lending borrowing base that was compatible with the seasonality and cash flow cycle of the business. Not only did Third Eye Capital help solve many operational issues but also trained management to convert data into informative decisions that allowed it to thrive in a competitive business environment.

Our business solutions enabled Coffrages to execute its plan, obtain coveted regulatory approval in less than a year, reduce working capital constraints, and more than double EBITDA during our relationship. Coffrages eventually refinanced Third Eye Capital through very low-cost loans, including one from the bank that had previously shunned the business. We saw so Coffrages could overcome growth and regulatory impediments and ultimately soar beyond management’s expectations.

“Without the help of Third Eye Capital, Coffrages Synergy Formwork would not have grown exponentially in the last two years. The team of Third Eye Capital took the time to understand our business before recommending improvement solutions, which we applied, allowing us to reach our goal of becoming the leader in formwork in the Montreal, Quebec and Ottawa areas. They did not hesitate to challenge us, which forced us to constantly surpass ourselves. With their advice and experience, they allowed us to implement a rigorous reporting system to increase our cash flow management and collection tracking. They are passionate about creating value that other conventional financial institutions would maybe not dare to do. It was a pleasure to work with the entire team and I would not hesitate to recommend them to other entrepreneurs.”
– Michel Beaudoin, CFO



Domestic (Canadian) Advisor registration form:

If you are an advisor that distributes or is interested in distributing a fund advised by Third Eye Capital Management Inc. you can register to request a call or meeting. You will be asked to provide information to confirm your qualifications to invest in or distribute the funds. This brief registration process allows us to conform to applicable securities laws and to obtain some basic information about you. Once we have qualified and approved your registration, we will get in contact with you to schedule a meeting.

    Personal Information

    I consent to receive information from Third Eye Capital.

    Domestic (Canadian) Investor registration form:

    If you are an existing or prospective accredited investor that distributes or is interested in distributing a fund advised by Third Eye Capital Management Inc. you can register to request a call or meeting. You will be asked to provide information to confirm your qualifications to invest in or distribute the funds. This brief registration process allows us to conform to applicable securities laws and to obtain some basic information about you. Once we have qualified and approved your registration, we will get in contact with you to schedule a meeting.

      Personal Information

      YesNo

      I consent to receive information from Third Eye Capital.

      International Investor registration form:

      For US persons
      If you are an existing or prospective accredited investor or an advisor that distributes or is interested in distributing a fund advised by Third Eye Capital Management Inc. you can register to request a call or meeting. You will be asked to provide information to confirm your qualifications to invest in or distribute the funds. This brief registration process allows us to conform to applicable securities laws and to obtain some basic information about you. Once we have qualified and approved your registration, we will get in contact with you to schedule a meeting.

        Personal Information

        I consent to receive information from Third Eye Capital.

        Address Information

        Investor Information

        An IndividualA Company

        U.S.Other (specify)

        Fund of FundsFamily OfficeBankOther (specify)

        $


        Instructions for the following sections: Individuals please answer Part A of Sections I and II; Institutions please have an authorized person answer Part B of Sections I and II.

        Section I - Accredited Investor Threshold Questions:

        Part A - For Individuals:

        1. I certify that I have an individual net worth, or my spouse and I have a combined net worth in excess of $1,000,000.

        2. I certify that I am highly a sophisticated investor who routinely invests sums of $250,000 or more.

        Part B - For Institutions:

        1. The submitter certifies that it is a bank, insurance company, registered investment company, business development company, or small business investment company.

        2. The submitter certifies that it is a charitable organization, corporation or partnership with assets exceeding $5 million, and that was not formed to invest the Fund.

        3. The submitter certifies that it is a corporation, partnership or trust with assets of at least $5 million, that was not formed to invest in the Fund, and whose purchases are directed by a sophisticated person.

        4. The undersigned certifies that all of its equity owners are “accredited investors” as defined in United States Securities and Exchange Commission Rule 501(a) and who can satisfy the higher criteria for the same set forth in Section I, Part A above.

        Section II - Qualified Purchaser Questions:

        Part A - For Individuals:

        1. I certify that I own not less than $1,000,000 in securities investments.

        Part B - For Institutions:

        1. The undersigned certifies that it is a bank, insurance company, registered investment company, business development company, or small business investment company

        2. The undersigned certifies that it is a "family owned company" (as defined below) that owns not less than $5,000,000 in securities investments. A "family owned company" is defined as a company that is owned directly or indirectly by or for two or more natural persons who are related as siblings or spouse (including former spouses), or direct lineal descendents by birth or adoption, spouses of such persons, the estate of such persons, or foundations, charitable organizations, or trust established by or for the benefit of such persons

        3. The undersigned certifies that it is a trust that was not formed to invest in the Fund, the trustee or decision-making authority of which, and every person contributing assets to the same, is a “Qualified Purchaser” under one of the other definitions of this Section

        4. The undersigned certifies that it is a person acting for its own account or for the accounts of other Qualified Purchasers who in the aggregate own and invest on a discretionary basis at least $5,000,000 in securities investments.

        Questionnaire Submission:

        Thank you for your patience in completing this questionnaire.

        If you have any questions, please contact Chris Vokes, VP of Investor Relations at Third Eye Capital:


        T 416-601-2270 ext 242
        E chris@thirdeyecapital.com