$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
- 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.