Background

Recent investment in technology had enabled specialist recruitment consultancy, Parity Group to deliver greater efficiency and stronger operating margins, while creating a more sustainable platform to support its future growth ambitions. As part of its continuing transformation strategy, the Group had identified a number of investment opportunities that required additional working capital support. With the Group’s working capital facility due to expire, the Board needed to find a lender that had both the desire and capability to provide the additional working capital needed, with an equally competitive cost of capital.

Action

Having advised the Group previously, FRP was engaged by the Board to run a competitive and focused refinancing process, maximising the availability of working capital and fund the Group’s growth ambitions. Having reviewed and considered the Group’s core collateral and financial data, our Debt Advisory team quickly identified a debt structure that would provide the necessary additional working capital through a bespoke asset-based lending package. The team established a shortlist of lenders who could meet or exceed the Group’s key refinancing requirements, with two being invited to meet management; both submitted highly competitive and market-leading refinancing offers.

Outcome

After a short period of discussion, during which both offers were further enhanced, the Group selected its preferred financing partner, due to its structure combining the greatest working capital availability with the most efficient cost of capital. Having confirmed the lender, FRP advised the Group during the legal documentation stage and through to completion of the refinancing.