$85.5m Corporate Restructure

Service

Client

Private Family Group

Location

VIC, NSW

Industry

Business & Corporate Finance

The Challenges

Our client sought a comprehensive funding solution that required structuring and navigating around the following key challenges:

Existing debt facilities were held with six separate financiers that relied upon business segmentation cash flows to support their existing debt,
The group’s activities and business involvement was spread across five distinct industry sectors,
Various lending facilities were attracting signifcantly higher debt costs that could otherwise have been lowered via alternate structuring strategies,
Each business and its industry were at differing stages of their lifecycle presenting separate risk factors and analysis with respect to their individual debt capacity and requirements,
We were also required to pre-emptively solve for future funding requirements on several property assets that had been flagged by the group for development. This required significant consideration and structuring to ensure that asset and cash flow provisions via the obligor groups would not inhibit these developments from proceeding in future periods.

Our Solution

Our firm actively tendered the groups funding requirements to several major banks to ultimately partner with a lender that addressed all the key considerations proposed.

The funding solution strategically leveraged the group’s expansion into new industries, which had previously relied on substantial equity funding.

We were able to structure funding solutions across the group that provided liquidity to key business’ whilst ensuring that future facilities were appropriately sized to accommodate the business’ forecast growth.

Client's Result

Acting on behalf of the client group EMK Thomas was able to deliver a complete funding solution in line with our clients mandate that delivered on:

Refinancing term debt facilities that were originally extended to the group during the COVID-19 pandemic at reduced interest rates and on extended tenures,
Providing increased flexibility and facility headroom in working capital, term debt, and CapEx facilities to five distinct borrowing entities.
Expanding Bank Guarantee lines to bolster support for several of the group’s businesses.

All Client Transactions

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