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$125m Two Bank “Club Facility” for Acquisition and Corporate Restructure

$125m Two Bank “Club Facility” for Acquisition and Corporate Restructure

Service

$125m Two Bank “Club Facility” for Acquisition and Corporate Restructure

Client

Private Family Group

Location

VIC, Qld

Industry

Business & Corporate Finance

Between July 2023 and December 2023 we closed 2 transactions totalling $59m and in March 2023 funded a further increase of $42m.
In total we have sourced $102m in increased funding for this client over 8 months
To complete the 3rd transaction we refinanced the clients total borrowings from its long term bank to 2 new banks under a Club Facility for the total debt which now stands at $110m.

Transaction 1

Fully debt funded $30m acquisition.
Tendered to all 4 major banks, with the transaction won by existing house bank on materially better terms and pricing than initially offered before EMK Thomas were engaged to run the tender.

Transaction 2

Fully debt funded $29m to exit 2 shareholders.
Challenge was that unlike Transaction 1, no new income was being generated by what was essentially an equity “cash out”.
Existing house bank initially declined and required an equity injection.
Competitive tender again produced a superior outcome with the house bank senior executives brought into the transaction by EMK Thomas and business retained.

Transaction 3

Debt funding of $42m to acquire a distressed Transport business.
Two of the under bidders in Transactions 1 and 2 have been brought in to replace the existing bank who offered a structure that did not suit our clients continuing growth aspirations.
The total term debt under the Club structure is $110m.
The Club structure provides two major bank balance sheets that our client now has access to for further growth after a period of consolidation.

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