Financial structuring advice in connection with the raising of debt for the acquisition of an industrial group in North America
Financial structuring mandate conducted in the context of the raising of financing for the acquisition of a North American industrial player by a European group.
Mandate description
Financial structuring consulting mandate carried out on behalf of a European industrial group specialized in the transformation of technical and composite materials.
The mission aimed to Structuring debt collection necessary to finance the acquisition of a company active in North America in the manufacture and distribution of technical products for industrial use.
The aim was to determine an optimal financing structure, to ensure coherence between operational flows and repayment capacity, and to coordinate exchanges between financial partners located on both continents.
Key issues
The main challenges consisted of:
- structure a financing package in accordance with international regulations;
- Calibrate the Level of debt compatible with consolidated post-acquisition operational flows;
- model the financial leverage scenarios based on the projected profitability of the target;
- and negotiate the financing conditions (pricing, covenants, guarantees)with lending institutions.
The mission involved several areas of analysis:
- the development of a transaction cash flow model integrating exchange rate effects and cross-border taxation;
- The preparation of financing memorandum for lenders;
- And the coordination with legal and fiscal advisers in the finalization of credit agreements.
Approach and results
The operation made it possible to secure a balanced debt structure, combining senior financing, mezzanine and financial instruments guaranteeing the sustainability of the lever and the flexibility of the group for future acquisitions.
The work also made it possible to strengthen the group's financial credibility with respect to its banking partners and to finalize the acquisition under favorable conditions.
This transaction illustrated the ability of the council to integrate international financial, fiscal and operational challenges in the structuring of complex financing.
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
Discover our TRACK RECORD
The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.