Accuracy provides M&A and debt refinancing support

A high pressure M&A-like engagement involved the refinancing of a €700m debt package, full coordination of an equity stake sale and deleveraging of a PE-owned target company.

 

Context

 

A PE fund acquired a car park operator in a highly leveraged transaction in order to finance the 17x EBITDA multiple. The fund began preparations to refinance the company as the deadline for debt repayment was rapidly approaching.

The company operates in twelve countries selling some 150 million parking tickets per year. Although operationally profitable, the company was loss-making after interest payments and had been unable to repay its debt as expected at the acquisition. Accuracy was called in to support the entire debt renegotiation and equity sale.

 

How we helped

 

During the preparation phase, Accuracy focussed on:

 

  • managing the information flow and communication;
  • coordinating a smooth and discreet internal Q&A process;
  • coordinating the data collection process;
  • providing input for the information memorandum; and
  • providing analysis on the contract portfolio.

 

In the second phase, a project management office was established to manage the debt and equity processes. The equity work stream involved:

 

  • preparing a carve-out issue paper;
  • preparing management presentations for bidders;
  • managing the data room;
  • coordinating the Q&A processes;
  • organising expert sessions;
  • analysing transaction valuations; and
  • providing input on SPA clauses.

 

The debt work stream involved:

 

  • preparing presentations for banks and rating agencies;
  • coordinating the bank’s Q&A process;
  • participating in expert meetings with banks and VDD providers;
  • analysing the financial model (including the financing structure and tax considerations);
  • supporting the process of receiving a rating from agencies;
  • defining available guarantees, future guarantee needs and revolving credit facilities; and
  • supporting the intra-year reforecast to update the business plan.

 

Outcome

 

Accuracy was essentially the special forces unit for the company’s top management (CEO & CFO) and took on tasks that would normally be performed internally. The process required strong communication and technical skills to ensure an efficient and effective transaction.

Our work was used to support the lack of internal resources and improve the company’s reporting quality. The value and reliability of our services and commitment to excellence built a strong relationship with the company, to such an extent that the company decided to replace an investment bank with Accuracy to run the sales process with one of the bidders.

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