Background

ERSG Holdings Limited (ERSG) is a market leader in the supply of technical recruitment solutions to most of the blue chip operators in the rapidly developing renewable energy sector. Recent investment in its global operating platform had enabled the company to deliver substantial revenue growth in its core jurisdictions of the UK, USA, the Netherlands, Germany and Taiwan. To fully capitalise on its market-leading position and strong customer relationships, ERSG identified that it could benefit significantly from a strategic realignment of its working capital facilities. With the company’s banking facilities due for renewal, the Board appointed FRP to run a competitive and focused refinancing process.

Action

FRP’s Debt Advisory team was challenged with finding a lender that had the capability to provide an integrated, flexible and international financing solution that could maximise the working capital available to fund ERSG’s growth ambitions. Having reviewed and considered all the data, our team quickly identified a debt structure that would provide the necessary additional working capital and secured a bespoke asset-based lending (ABL) financing package. The team ran a tight refinancing process to identify lenders who could meet or exceed ERSG’s needs, with two lenders being invited to meet management which subsequently led to two highly competitive refinancing offers being received.

Outcome

After a short period of discussion during which both offers were further enhanced, ERSG selected a preferred financing partner, capable of delivering the greatest working capital availability with the most efficient cost of capital. The FRP team was then able to advise ERSG during the legal documentation stage, and through to the completion of the refinancing.