Project Reach is one of the leading wholesale internet service aggregators in the UK. As a result of its exceptional contract growth pipeline the business needed to refinance its existing banking facilities into an LMA-style senior debt and capital expenditure facility, to support its development over the next three years.
FRP’s Debt Advisory team was appointed by Reach and its private equity backer to manage a competitive debt-raising process among clearing banks and private credit funds.
We developed marketing materials to sell the credit to the lender community and managed negotiations between potential interested funders and the company.
We subsequently developed a covenant model for the transaction which incorporated operational headroom and managed both term-sheet and final senior financing agreement negotiations between the refinancing bank, the company and respective legal counsel.
The Debt Advisory team delivered a fully committed, £10 million, three-year revolving credit facility which provided Reach with the financing capacity to deliver its contract growth plans. We also negotiated an additional £5 million accordion option within the agreement, to provide additional funding availability should the business seek to accelerate its growth.
We delivered two credit-backed offers from the competing banks and secured a lead bid that provided material covenant flexibility to allow for growth, and minimised the cost of the new facilities.
Competitive tension between the final leading bidders ultimately secured highly competitive terms without the need for invasive due diligence, which might otherwise have delayed the process.
Competitive tension between the final leading bidders ultimately secured highly competitive termsDave Edwards Debt Advisory