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Restructuring Catalina Files for Bankruptcy

December 13 2018

In the US, shopper intelligence firm Catalina has filed for bankruptcy, using Chapter 11 protection in the US Bankruptcy Court for the District of Delaware.

Jerry SokolOwned by private equity firms Berkshire Partners and Hellman & Friedman, Catalina is headquartered in St. Petersburg, FL, with operations in the US, Europe and Japan. The firm offers access to a shopper history database, which is used by CPG brands to target consumers with behavior-based messages at appropriate times, via mobile, online and in-store channels. This year, Catalina re-focused on digital products and services through the launch of the Catalyst purchase data model; big data-based shopper prospect tool Launch Pad and ad impact tracker Ad2Offer; and a shopper engagement package, buyR3Science. The company also appointed former Turner Broadcasting exec Wes Chaar as Chief Data and Analytics Officer.

In October, the firm hired turnaround expert Jerry Sokol (pictured) as its new CEO in a bid to streamline the business. Catalina has now announced that it has reached an agreement with most of its lenders to implement a restructuring support agreement which will allow it to reduce its debt by approximately $1.6 bn. Sokol said the announcement enables Catalina to accelerate investments in technology, advanced analytics, data science and talent to strengthen its core capabilities, while developing new data-driven solutions for customers. 'After carefully evaluating our options, we determined that a court-supervised restructuring is the best way to strengthen our financial position for the long term', Sokol added.

The company has obtained commitments for $125m in new debtor-in-possession (DIP) financing from its current term-loan lenders, as well as a $40m exit facility to support the company through and after its restructuring. Catalina will also receive $150m of existing first-lien debt that is rolled into the DIP. For the purposes of reorganization, Catalina's financial adviser Centerview Partners estimates that the company's equity value after emerging from bankruptcy would be between $179m and $449m. Catalina expects all operations - both in the US and overseas - to continue as usual throughout the restructuring process, and operations outside the US are not included in the bankruptcy proceedings.

Web site: www.catalina.com .

All articles 2006-19 written and edited by Mel Crowther and/or Nick Thomas.

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