$21.0m- Corporate lending Restructure

Service

Client

Privately owned national business with Property Holdings

Location

VIC, NSW, QLD, WA

Industry

Commercial Cleaning and Property Maintenance

The Challenges

Our clients had implemented family succession planning and wanted to sell their main trading entity to a family member.

The sale required restructuring of the business’ existing commercial facility limits (circa $3.0m) as well as a restructure of the families existing $15.5m Commercial, Industrial and residential property limits that required separation from the trading business.

Our client also requested that we seek additional funding of $2.0m for future property development activities required within the PropCo structure.

Our Solution

Our solution involved:

Working through the initial stand alone PropCo structure and a debt sizing analysis to determine the ability to establish a PropCo and new OpCo stand-alone entities.
We were able to seek a major bank refinance of the new OpCo structure with the new purchasing entity on behalf of its shareholders, and
Simultaneously we were able to restructure with the incumbent bank the residual PropCo limits from $15.5- $17.5m that stood stand alone to any OpCo cash flow support and security reliance.

Client's Result

Clients were able to action their succession planning,

All existing property limits remained undisturbed and supported by a $2.0m increase to fund property development activities,

Both PropCo and Opco structures were separated from being funded by one major bank lender and both achieved improvements to their previous interest rates.

All Client Transactions

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