CASE STUDY: Utility Service
THE DEAL
SIZE: $13 Million
LOCATION: Nova Scotia
SECTOR: Utility Service
LOAN TYPE: Uni-Tranche Acquisition Term Loan
THE REAL WIN FOR DWA.
DWA was asked to get involved as the client was struggling to close an acquisition due to challenges in securing debt capital. The team at DWA was able to structure a creative solution and rapidly obtain financing, preventing an already long-delayed transaction from going stale and propelling the company into material growth following its successful acquisition.
THE CHALLENGES.
No historical financial statements given a carve out recently acquired a carve-out
60%+ customer concentration risk with three-year contract
Bonding requirement in the middle of the capital stack
Complicated deal structure with vendor take back, required capital spending, and a complicated equity structure requiring dividends
RISK MITIGANTS.
Highly regarded management team at the investment fund level
Well respected management team moved over with the carve-out
Strong industry spending trends support revenue pipeline
Reasonable leverage metrics
OUTCOME.
$13 million private uni-tranche term loan
Materially lowered debt service costs in first two years
Brought in a Canadian Bank for a line of credit and to set up the term refinancing when appropriate
BORROWER TESTIMONIAL.
“Diamond Willow Advisory was an integral partner to consummating the acquisition. More than a typical debt advisor, they took the time and had the expertise to understand our unique commercial needs.
They demonstrated a nuanced and steady hand in helping us navigate a foreign market. Without them, we likely would not have been able to find the right debt capital for this deal.”
