Debt advisory Working with borrowers and private equity financial sponsors on raising and refinancing debt

Our client was a market-leading, independently owned corporate within the business support services sector. They provided soft facilities management solutions including cleaning, security, compliance and catering services to blue-chip corporates and the public sector.

Our client needed to raise £50 million through a combination of asset based lending (ABL) and unitranche. This structure is gaining more popularity across the marketplace, particularly with companies who have both good asset bases and margins where EBITDA converts well to cash flow. The intercreditor principles between the ABL provider (typically a bank) and the unitranche provider (typically a fund) are imperative for concluding a successful transaction. Each is different, as we usually see the ABL funder able to advance a higher proportion of the overall financing package compared to more market-standard structures.

We drove a competitive process leveraging our extensive sector knowledge, experience and network of funders across the capital spectrum. During the transaction, our team was also on hand to advise on an off-market acquisition and refinance of the existing banking facilities. Our involvement ensured the business capitalised on a strategic growth opportunity and delivered an investment that met the shareholders’ key objectives.