ButcherJoseph Advised Haberfeld on Senior/Junior Debt Refinancing Transaction

Who is our client?

• Haberfeld Associates is a leading provider of omni-channel marketing services and consulting designed to increase customer traffic and profitability of retail financial institutions.
• Founded in 1989 with headquarters in Lincoln, Nebraska, Haberfeld has partnered with over 600 community banks and credit unions throughout its history and is a recognized pioneer in the field of bank customer acquisition and profitability enhancement.
• Haberfeld’s superior customer acquisition strategy leads to significantly more low-cost core deposits, enhanced cross-sell, and increased fee and interchange income, all contributing to superior returns relative to the industry.

Why did Haberfeld engage ButcherJoseph?

• Haberfeld initially engaged ButcherJoseph to pursue a transition to 100% ESOP ownership. Since the successful conversion to employee ownership, management believes the ESOP structure has greatly benefited company operations by aligning and incentivizing the workforce, and by gelling the company culture.
• Since the original ESOP transaction, Haberfeld met and exceeded financial expectations. The Company has used its cash prudently and has been able to aggressively deliver.
• Spurred by growth and the continued success, Haberfeld later completed a recapitalization transaction to raise institutional capital and update management incentive plans to ensure it could continue to provide long-term value to its clients.
• Most recently, Haberfeld recognized that there was an opportunity to refresh its balance sheet and engaged ButcherJoseph once again to undertake a senior and junior debt refinancing transaction.

What did ButcherJoseph deliver?

• In the first phase of the engagement, ButcherJoseph conducted a historical financial review, industry analysis, scenario-based analysis, and pro forma transaction modeling.
• Given the results of that analysis, the Board of Haberfeld directed ButcherJoseph to execute one of the alternatives as presented.
• ButcherJoseph subsequently created compelling marketing materials, created a thorough debt capital raise process, and managed the negotiation with all capital providers through closing.
• This last transaction allowed Haberfeld to renew its ownership structure to better match its strategic plans moving forward, while maintaining an employee ownership structure and culture. The refinancing also provided Haberfeld with capital to retire obligations to the Company’s founders.