Briggs & Stratton Taps Restructuring Advisers With Debt Looming

(Bloomberg) -- Briggs & Stratton Corp., the century-old maker of engines for lawn mowers and garden equipment that’s at risk of going bankrupt, hired restructuring advisers to help rework debt that starts coming due this year.

The company tapped Houlihan Lokey Inc. ahead of a June 15 interest payment on unsecured bonds that mature in December, according to people with knowledge of the matter. They asked not to be identified discussing the private decision. Some holders of those notes have organized and tapped Gibson Dunn & Crutcher LLP and Imperial Capital LLC to advise them in talks with the company, the people said.

“While we are tackling some short-term challenges, the strong historic underpinnings of Briggs & Stratton’s business -- built over our 110+ year history -- give us confidence in the future of our company,” spokesman Rick Carpenter said in an emailed statement. “We remain focused and well-positioned to continue to serve our customers’ needs.”

The Milwaukee-based company said it will continue to work with its banks and address the bond maturity to bolster its liquidity and balance sheet. It’s planning to cut spending, has eliminated its stock dividend and will explore potential asset and business sales, Carpenter said.

Briggs & Stratton said in January that it would suspend its dividend. The shares have plunged about 70% this year.

Representatives for Gibson Dunn and Imperial Capital didn’t immediately respond to requests for comment while a representative for Houlihan Lokey declined to comment.

Briggs & Stratton’s $195 million of unsecured bonds mature in December. But if any of the notes remain outstanding on Sept. 15, the company’s 2024 revolving credit line would have to be repaid immediately, according to a company filing. It had borrowed $402 million on the credit line as of March 29.

The company was founded in 1908 and grew alongside American suburbs, with its engines powering brands such as Craftsman, Toro and Snapper. It previously warned that it may have to file for bankruptcy if it were to default on its credit facility or unsecured notes.

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