FiberTower
After merging with competitor First Avenue Networks, FiberTower Corporation, a leading provider and forerunner of facilities-based backhaul services to wireless carriers, was ready to begin scaling its operations. As a dominant provider in this emerging segment of the telecommunications infrastructure market, FiberTower recognized that build-out capital could prove difficult to secure and needed the right financing partner. Jefferies proved to be the obvious choice, due to the Firm's experience in the wireless space, multi-product capital markets expertise, ability to effectively communicate growth company stories to investors and previous advisory assignment for the parties' $1.5 billion merger. As sole bookrunning manager, Jefferies structured a complex convertible instrument that spanned both high yield and pure-play convertible investors. Operating in a compressed time frame, Jefferies generated very strong demand and completed the transaction in just over four weeks. The resulting $402.5 million convertible senior secured notes offering was heavily oversubscribed, which produced a favorable result and limited dilution to existing shareholders. The transaction positioned FiberTower to maintain its first-mover status among its competitors and keep pace with increasing customer demands.

MTR Gaming Group
When new gaming legislation presented an ideal expansion opportunity for MTR Gaming Group, an owner and operator of premier US gaming properties, the company broke ground with Jefferies. With established casinos in Nevada, Minnesota, West Virginia and Michigan, MTR sought funding for a new state-of-the-art thoroughbred racetrack, on Pennsylvania's Lake Erie, a lively tourist destination attracting approximately four million visitors a year. Having chosen Jefferies as the lead manager on a previous debt transaction, MTR once again looked to the Firm for its gaming expertise and innovative financing solutions. While an obvious option was an expensive global refinancing of bank debt, Jefferies took a more creative approach, structuring a two-tranche transaction consisting of a credit facility carve-out and senior subordinated notes offering while utilizing internally generated cash flow. Jefferies acted as sole placement agent, leading a targeted and expeditious marketing process, raising $125 million, and in addition garnered consents to increase the credit facility to $85 million. The solution was more cost-effective than a refinancing, while avoiding complicated bank covenants, and proving beneficial to existing note holders. The transaction helped MTR to diversify revenues and profit sources and remain competitive by expanding its geographic reach within a new territory.

Mattress Giant
Freeman Spogli, a private equity investment firm focused on growth companies in the retail, direct marketing and distribution sectors, was keen to add Mattress Giant Corporation, one of the nation's premier bedding retailers, to its portfolio of investments. It called on Jefferies' leveraged finance team because of its lending capabilities, experience and creative approach. Jefferies recommended a complex, two-tranche structure consisting of a senior secured credit facility and senior subordinated notes offering. Jefferies Finance fully committed to both tranches and syndicated the entire capital structure, with Jefferies acting as sole lead arranger, administrative agent and syndication agent and sole placement agent. The transaction was oversubscribed, valued at a combined $115 million, and was executed seamlessly. The subsequent transfer of ownership of Mattress Giant to funds controlled by Freeman Spogli was successful. Freeman Spogli enhanced its portfolio and aligned with the talented management team of a leader in the growing specialty bedding retail sector with minimal risk. Mattress Giant gained a valuable, strategic partner and access to new capital to help maximize leverage for acquisition financing, while providing flexibility to rapidly expand its store base and improve its market share in existing regions.