Los Angeles, CA (April 5, 2018)—VER has entered into an agreement to merge with Production Resource Group, bringing together two of the largest event production companies in North America. VER’s audio division, VER Tour Sound, has provided audio services for numerous national-level tours and festivals since it was founded in January, 2013. The merger is no simple matter, however; as part of the transaction, VER filed voluntary petitions for Chapter 11, though only regarding its North American operations.
VER is expected to continue operating in the normal course during the Chapter 11 process with no interruptions for current or future clients, VER said in a statement. Employees will continue to be paid and receive benefits as usual, and having mapped out parts of its restructuring with various parties in advance, VER expects to emerge from Chapter 11 quickly.
VER has received commitments from existing lenders, including funds managed by GSO Capital Partners, for up to $364.7 million in debtor-in-possession (DIP) financing to support its continued operations during the Chapter 11 process.
VER provides production services in Broadcast, Audio, Video, Lighting, LED, Cameras, Rigging, Media Servers, Fiber and more, via 35 offices across North America and Europe.
PRG provides audio, video, lighting, rigging, staging, scenery and automation systems to clients in the live music, TV/Film, Broadway, sports, gaming, corporate experiential and live events markets. The company has 44 offices across North America, South America, Europe, Middle East, Asia, and Australia, and is owned by The Jordan Company and Management.
"Entering into this agreement and undertaking the court-supervised restructuring process will greatly reduce VER's outstanding debt and position the company for the merger with PRG," said Digby Davies, CEO of VER. "VER remains a strong business with more customers than ever before, and a customer satisfaction rating that is highest in the industry. The actions announced today will provide a stronger capital structure and sufficient cash to fund operations."
Davies continued, "During the process we will continue to provide our clients with the largest inventory of equipment and unmatched reliability and expertise. Clients will work with their trusted VER representative and their projects will not be interrupted."
"We are pleased to enter into this agreement with VER and partner with GSO," said Jere Harris, Chairman and CEO of PRG. "VER's terrific client base and vast product and service offerings are a natural complement to our business. Upon completion of the transaction, we look forward to working closely with the talented VER team to strengthen our business and deliver even greater value and service to our clients."
VER • www.ver.com
Production Resource Group • www.prg.com