**Platinum Equity’s United Site Services Faces Financial Challenges**
United Site Services, a portable toilet company backed by Platinum Equity, is currently seeking advisory support as it grapples with ongoing performance issues. Sources familiar with the situation revealed that the financially strained company has re-engaged PJT Partners Inc. and Milbank for assistance. Additionally, a consortium of lenders has enlisted Centerview Partners for debt advisory services. This lender group, which holds over half of the company’s debt, had previously worked with Akin Gump Strauss Hauer & Feld, as reported earlier.
The company is experiencing a cash crunch following disappointing second-quarter results, which saw a year-over-year revenue decline of 11%, bringing in $222 million. Reports indicate that United Site Services had approximately $69 million in liquidity during the quarter. Last August, the company underwent a debt restructuring with an ad hoc group of lenders, also advised by Akin, which required new capital injections and altered the repayment hierarchy to include a new second-out loan. Lenders not part of this negotiating group are expected to face unfavorable recovery prospects in the event of a restructuring or default.
Platinum Equity acquired United Site Services in 2017 and transferred ownership to a continuation fund in 2021, following better-than-expected performance post-pandemic.
**FAQ**
*What financial challenges is United Site Services currently facing?*
United Site Services is struggling with cash flow issues, reporting an 11% decline in revenue for the second quarter and low liquidity levels, prompting the need for advisory support.
