At present, many otherwise viable companies are being hit hard by the effects of COVID19, knock-on impacts on their customers and supply chain, plus the wider economic situation. Companies affected in this way and others previously experiencing trading challenges can find their access to finance restricted or their existing lines of credit withdrawn.
PFG can assist clients navigating choppy waters to arrange debt finance where flexibility and preparedness to deploy facilities from a funder in support of business turnaround might otherwise be difficult. Introducing a lender with experience of supporting companies in effecting a turnaround plan is crucial. At PFG we utilise our extensive knowledge of the market to bring the right funder to the table at the right time.
The changes delivered by the new Corporate Insolvency and Governance Bill will also see developments to the circumstances in which funding might be delivered to companies utilising a formal restructuring process assisted by an Insolvency Practitioner. PFG has a track record of being able to deliver funding into pre-pack and CVA situations.
Case Studies
Automotive
Finance Required: £35m
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Facility Arranged: Asset Finance (Hire Purchase + Lease Purchase + Operating Lease.
Client: UK subsidiary of a multi-billion turnover global group. Single and dual
source key component OEM (original equipment manufacturer) – part
of global automotive supply chains for major motor vehicle producers.
Purpose: To facilitate the creation of new production lines and manufacturing cells for next-generation critical components.
Solution: Finance sourced from multiple funders on a planned basis, where each individual asset, or group of assets, was packaged and funded by an individual lender or finance company. Finance needed to be in place on time and in line with a complex implementation schedule.
Construction
Finance Required: £2.3m + £1.5m.
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Facility Arranged: Term Loans.
Client: Construction company.
Purpose: To facilitate the acquisition of two target companies.
Solution: Finance facilities arranged in support of the client’s strategy of building a construction group. Initial acquisition on target 1 was short term to facilitate a rapid sales process, subsequently refinanced out to a longer-term lender. Facilities delivered on a term debt basis supported by the historic/forecast revenues of the businesses.
Construction Related
Finance Required: £15m.
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Facility Arranged: Asset Based Lending – Invoice + Asset + Inventory Finance
Client: Product manufacturer into the construction sector
Purpose: Refinance of existing funder seeking an exit and provision of new, flexible finance facilities in support of a turnaround plan proposed by a new incoming management team with a proven track record
Solution: Flexible Asset Based Lending solution arranged from a funder prepared to deploy in a turnaround situation and back the plan proposed.
Facilities Management
Finance Required: £10m
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Facility Arranged: Working Capital Facility.
Client: UK subsidiary of a global facilities management group.
Purpose: To maximise availability of working capital and provide a liquidity buffer during seasonal peaks.
Solution: Off balance-sheet finance facility arranged with the capability to scale in line with forecast business requirements. A flexible cashflow solution enabling short term “cash advances” to be drawn down as and when needed.
Leasing
Sector: Leasing.
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Finance Required: Initially £5m (since grown to £100m).
Facility Arranged: Funding line to support own lease book.
Client: Leasing company
Purpose: Wholesale funding required to facility growth of finance company own leasing book.
Solution: Scalable funding line delivered from a funder with the capability to match the growth of the client.
Marketing
Finance Required: £40m (to date).
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Facility Arranged: Working Capital Facility.
Client: Multi-national marketing and public relations provider.
Purpose: To maximise availability of working capital thereby enabling a strong upward growth curve to be maintained.
Solution: Delivery of a flexible cashflow solution enabling short term “cash advances” to be drawn down.
Packaging
Finance Required: £1.5m.
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Facility Arranged: Revolving Cashflow.
Client: Packaging Producer.
Purpose: Acquisition finance.
Solution: Revolving Cashflow facilities deployed, enabling our client to unlock some equity investment to utilise on a further acquisition in support of a “buy and build” strategy.
Security
Finance Required: £3.5m.
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Facility Arranged: Invoice Finance + Term Loan.
Client: Security company – remote and on-site service provider
Purpose: Refinance of the incumbent funder seeking to exit, plus funding of the company during an insolvency process and financing for NewCo post Administration in line with management’s turnaround plan. Company insolvency was as a result of external factors unrelated to core operations and the business model.
Solution: Introduction of a new funder with the capability to replace the existing lender and finance the company through Administration and deliver expansion funding for the NewCo.
Wholesale Fruit and Vegetables
Finance Required: £8m.
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Facility Arranged: Asset Based Lending – Invoice Finance + Asset Finance + Term Loans.
Client: A purveyor of fruit and vegetables to restaurants and food outlets.
Purpose: To maximise availability of working capital in support of planned growth and to ensure improved matching of finance facilities with return on investment.
Solution: Refinance of existing bank lending with a new structured Asset Based Lending facility with increased quantum and improved repayment basis thereby easing pressure on cashflow.
