Founded in 1984 and headquartered in Yorkshire, CMD Ltd are a British manufacturer of power and ergonomic solutions. They meet the challenges of integrating power and AV/data access for people working in offices and commercial spaces. Their products range from underfloor powertracks and power hub distributions systems; designed to be quick, easy to install and adaptable for contractors, clients and end-users.
FRP debt advisory team were appointed to help Rubicon Partners secure a leveraged acquisition finance package to help fund their investment into CMD Ltd. The team prepared detailed briefing materials, highlighting the strengths of the business and potential under new ownership, to take to the lender community.
Given the deal represented a carve out of a non-core subsidiary from a US parent, the FRP debt team needed to mitigate lenders separation concerns and any risk perceptions relating to the potential cyclicality of end user markets.
FRP led negotiations with all lenders, supported the delivery of management presentations to shortlisted parties and finally supported Rubicon and their legal counsel on the negotiation of financing documentation to closing, with the preferred funding partner.
The team managed all credit based commercial negotiations on the deal including pricing, covenants and documentary flexibility, and secured three fully credit approved financing offers.
A leveraged acquisition finance package was agreed with OakNorth Bank, providing Rubicon Partners with a highly efficient capital structure with substantial covenant headroom which would allow the business to invest for growth.