AWL
Refinancing of its current financing facilities by adding a new surety provider
- In July 2022 Avaxa was engaged by AWL to assist in the refinancing of which adding a second lender or surety provider was one of the main goals;
- AWL was founded in 1993 and is a specialised designer, manufacturer and (system) integrator of high-end smart machinery focused on advanced automation processes, such as welding, cutting, assembly and material handling with smart robotics solutions for automotive, general industry and logistics;
- The existing financing package of AWL amounted to a combined EUR 70mln+ including overdraft facilities, a guarantee facility and mortgaged loans. A vast majority of the financing package was being provided by Rabobank. To future proof its financing structure and cater for a period of growth, AWL was looking to broaden its lender base through the refinancing;
- In the first phase of the refinancing we focused on substantiating the financing need of AWL and performed a market sounding to gauge the indicative appetite of potential lenders to provide financing to AWL;
- To this extent Avaxa composed a detailed teaser to distribute to a long-list of potential lenders and surety providers;
- Following the market sounding several surety providers indicated serious appetite in AWL. Adding an additional surety provider to its base of lenders would give AWL more firepower / headroom to execute its growth strategy, in particular by realizing its order book of contracted projects;
- As a result, in December 2022 AWL decided to finalize the refinancing process with Zurich Surety by means of putting in place a EUR 15m bank guarantee facility secured by shared (with Rabobank) 1st pledges on receivables and inventory and a 2nd mortgage (after Rabobank) on the Dutch real estate owned by AWL’s parent company;
- Avaxa supported AWL in the communication with Zurich Surety, answering questions and addressing additional information requests. Furthermore, Avaxa ensured a smooth deal process with quick response time, short communication lines and active stakeholder management throughout the entire process;
- In particular, Avaxa had an important role in aligning the financing and security positions of Rabobank and Zurich which we effected with legal support from various external legal counsels by means of putting in place an Intercreditor Agreement; and
- The new financing package was finalized in May 2023 and provides AWL with the operational and financial flexibility as well as sufficient financial headroom to execute its pipeline of contracted projects.
