Teaming to Secure a $355M Debt Restructuring

The Challenge

In November 2008, Michael Iacampo, currently a Financial Advisor in our Bonita Springs, Florida office, was a Senior Vice President at a competing firm. He had tried unsuccessfully for years to work with that firm's investment bankers to help his client, the CEO of a major Florida-based firm, restructure his company's debt.

The same client had also popped up on the radar of one of Merrill Lynch's investment banking groups in California. The West Coast investment bankers put out the word to the Naples Complex, asking if anyone had a connection. That's when then Complex Director David Donaldson approached Iacampo about all that Merrill Lynch can offer Financial Advisors with the most complex client-service needs. "It became obvious to me," says Iacampo, "Merrill Lynch had a much more accommodating view of what my client really needed, and it clearly had the capabilities to get the deal done."

The Teaming Process

Just three weeks after Iacampo joined Merrill Lynch, Iacampo and a Merrill Lynch investment banker were talking with the client about the ways they could help with a new leveraged financing. "We believed that once the corporate bond markets bottomed, it wouldn't be long before demand for corporate debt returned," says Iacampo. Because the client's company is privately held, the commercial banking side was also involved, and after the sale of Merrill Lynch to Bank of America, the decision was made to run all analytics on the deal out of Bank of America's Global Capital Markets group.

Crafting a Solution

The debt restructuring, which closed in October 2009, creates tremendous operating flexibility for Iacampo's client. In fact, the rating agencies have already raised the client's bond rating. All of the company's several dozen offices around the world are now in the process of transferring their commercial banking business to Bank of America, and Iacampo is working with the company's 401(k) selection committee to position Merrill Lynch as the advisor on its 401(k) plan.

The Winning Edge

Iacampo's teaming with the Client Coverage Group, Investment Banking and Bank of America Global Capital Markets resulted in a company-wide success. In addition to the $355M debt restructuring, Bank of America recently extended Iacampo's client a loan for the house he's building and is even working with the client to structure the debt on the client's new yacht, as well as address other credit needs.

For Financial Professional Use Only – Not For Distribution

This case study summarizes a specific transaction. It does not represent the experience of every client or Financial Advisor and does not indicate future performance or success. Solutions presented are not appropriate for everyone. Financial Advisors should review terms, risks and conditions of specific products or services with their client.