Market Tender & Cash Out Equity Release

$21.7m Commercial Facilities

Business & Corporate Finance, Debt Advisory

$21.7m

Market Tender & Equity Release

Manufacturing

The Scope

The client’s existing debt facilities were held with a second-tier bank, where the relationship had historically worked well while total exposure remained below $15m.
As with all banks, risk and credit appetites evolve as debt increases. Information requirements can become more onerous and time-consuming, inhibiting a client’s ability to act quickly on opportunities.
We formed the view that the strength of the client, sector, and underlying security—supported by very strong EBITDA and free cash flow—would translate into a relatively straightforward approval process with a major bank
In addition to reviewing the existing $13m of facilities, a key objective was to secure a financier with both the appetite and capability to provide a $5m cash equity release with minimal lender controls, alongside a broader facility suite to support working capital, trade finance, and treasury requirements (including term debt hedging).
We recommended a formal market tender to assess both current and future appetite and to maximise competitive tension across the mid-market and corporate banking relationships we hold.
Nexus was engaged to manage the entire tender and debt exploration process, including financier selection, preparation and presentation of funding requests, pricing and structural negotiations, and transaction execution.

As an existing client engagement, minimal involvement was required from the client or stakeholders. Nexus prepared a comprehensive Information Memorandum that clearly articulates the business’s strengths and focuses on the key metrics and risk considerations relevant to bankers and credit committees.
Undertook detailed debt servicing and capacity modelling, including group consolidation, cash flow leverage, working capital dynamics, and EBITDA-to-free-cash-flow analysis.
Coordinated and instructed all valuations across approximately $25m of industrial assets being offered as security, ensuring suitability for first-mortgage acceptance.
Prepared a detailed comparison dashboard for the client, summarising each offer, key terms, pros and cons, comparisons to existing arrangements, and Nexus’ recommendations.

As an existing client engagement, minimal involvement was required from the client or stakeholders. Nexus prepared a comprehensive Information Memorandum that clearly articulates the business’s strengths and focuses on the key metrics and risk considerations relevant to bankers and credit committees.
Undertook detailed debt servicing and capacity modelling, including group consolidation, cash flow leverage, working capital dynamics, and EBITDA-to-free-cash-flow analysis.
Coordinated and instructed all valuations across approximately $25m of industrial assets being offered as security, ensuring suitability for first-mortgage acceptance.
Prepared a detailed comparison dashboard for the client, summarising each offer, key terms, pros and cons, comparisons to existing arrangements, and Nexus’ recommendations.