Background

John Lawrie Group, owned by Rubicon Partners, is a diversified metal recycling, decommissioning and steel tubular piling business servicing the UK, European and US construction markets. Following a period of sustained strong trading performance across all divisions – during which the business had significantly de-geared – the shareholders were looking for a long-term refinancing package to optimise the capital structure of the Group. FRP was therefore engaged as exclusive debt adviser to the Group, to run a competitive refinancing process that would re-gear the business with efficiently priced facilities.

Action

FRP’s Debt Advisory team developed high-quality briefing materials which demonstrated the defensibility and quality of the business on a global basis. The team guided potential lenders through complex diligence Q&As, and supported the development and delivery of a high-quality management presentation. Once preferred lenders had been selected, our team helped to develop a covenant model and negotiate a covenant suite with substantial future operating headroom. FRP also advised on the required structural flexibility which will support future adjustments to the financing as the Group evolves over the next few years.

Outcome

Our Debt Advisory team successfully negotiated a senior bank financing package involving two banks, which has created a significantly more efficient capital structure for the Group. We were able to advise on the appropriate denomination of facilities via both UK and US tranches, which will provide efficient risk hedging for the business, given its multi-jurisdiction operations.