A$700m+ Loan Refinancing
ClientAustralian subsidiary of a major Asia based company active in upstream and midstream conventional and renewable power generation
The ProjectFirst stage: To review company existing financial arrangements, current market conditions, credit metrics and provide a refinancing strategy and recommendations report to senior management for a ~A$700million of bank loan and guarantee facilities.
Second Stage: To assist the Client in the implementation of the agreed refinancing plan through careful management of current lenders and the introduction of new lenders.
ClientAustralia’s second largest records management services provider owned by private equity
The ProjectThe Client was seeking to refinance their senior and vendor (subordinated) debt and provide additional headroom for organic growth but also to fund an acquisition pipeline. Being private equity owned the Client was being shoehorned into a traditional leverage loan financing ie high margins with unduly restrictive conditions by two Australian banks.
Magma Capital was engaged to provide independent, expert advice of what the client could reasonably expect to achieve and to drive the successful refinancing.
$A175m - Upsize and Refinancing
ClientASX Listed (A$320m market cap) client
The ProjectTo provide independent Board advice and assist management in the refinancing of the client’s A$130m multi-currency secured debt facility and provide additional debt capacity for future growth needs up to A$175m.
Whilst the client was generally happy with their existing bank relationship, the terms and conditions in the facility were overly restrictive.
Despite refinancing the facility only a year prior at a reduced margin, the Board had a strong desire to move to a funding platform more commensurate with the company’s credit quality and ASX top 300 status.