client_transactions

SSG Client Transactions

Title

Tobacco Rag Processors, Inc. ESOP
Client Profile

Client Profile

Tobacco Rag Processors, Inc. ("TRP" or the "Company") is the largest independent value added processor and supplier of tobacco to the lower tier cigarette, machine rolled cigar and other value priced tobacco markets. Located in Wilson, NC, the Company has experienced impressive growth due to its outstanding customer service, competitive pricing facilitated by its substantial leaf tobacco inventory and flexible operating structure. The Company currently operates the largest of three independent tobacco processing facilities in the U. S. and has also developed an extensive low cost global network of tobacco leaf suppliers.
Situation

Situation

Due to complicated shareholder issues and for estate planning purposes, SSG and BB&T Capital Markets ("BB&T") were retained by TRP to explore strategic alternatives, including a potential recapitalization of the Company.
Solution

Solution

After evaluating several alternative solutions, SSG and BB&T presented the equity holders with the idea of selling the Company to a newly created ESOP entity, Tobacco Rag Processors, Inc. Employee Stock Ownership Trust ("ESOP"). The transaction with ESOP simultaneously provided sufficient liquidity to equity holders while maintaining a strong and viable long term business for the benefit of the Company's loyal base of employees. As part of this transaction, SSG and BB&T also facilitated the private placement of $75 million in senior secured credit facilities, which provided the capital for the ESOP to purchase the stock of TRP from its existing equity holders.
May 2011
Employee Stock Ownership Plan of Tobacco Rag Processors, Inc.
has purchased 100% of the Common Stock of
The undersigned acted as Investment Banker to
Tobacco Rag Processors, Inc. on this transaction.

Call to learn more

Call to learn more

If you would like to learn more about this transaction, or any of our transactions, call us today.

Philadelphia
(610) 940-1094

Contact by E-mail »

New York
(212) 786-7432

Contact by E-mail »