Walraven
Refinancing and increase of Asset Based Facility, Term Loan, Revolving Credit Facility and Guarantee Facility
- In July 2022, Avaxa was engaged by Walraven to assist in the refinancing of its existing senior and asset-based facilities giving the approaching maturity date;
- Walraven, founded in 1942, is a family-owned global leader in mechanical and electrical installation systems. The company is committed to innovation and sustainability and has a strong presence in over 40 countries;
- Following several years of strong and particularly international growth, Walraven’s existing financing package was no longer future proof. To be able to continue its growth strategy, Walraven required more financial headroom to finance its international working capital need;
- Walraven maintained a strong and longstanding relationship with its incumbent bank. Given this ongoing relationship, initially the decision was made to negotiate an agreement with the incumbent lender one-on-one;
- However, the incumbent lender was not able to sufficiently accommodate the financing needs and requests of Walraven. This was particularly caused by the fact that the incumbent bank was not able to provide asset based funding in Czech Republic whilst Walraven has a significant and growing asset base and funding need in that jurisdiction. As a result, we decided to initiate a broader refinancing process;
- Following a broad market sounding which yielded strong appetite from several lenders with a better geographical fit with Walraven’s international financing needs as well as stronger product capabilities, we ultimately struck a deal with KBC Bank. KBC Bank’s product and geographical capabilities proved to be a perfect match with Walraven’s international presence, asset base and financing need;
- Also, the refinancing came with substantially improved terms and conditions, including lower pricing as well as significant headroom in the financing package provided which further enhances Walraven's financial flexibility;
- The new financing package provides Walraven with the room to execute its envisaged international growth strategy and to cater for its international working capital requirements. All at very competitive terms;
- Avaxa assisted Walraven in determining the appropriate financing structure based on its strategic plan and financial outlook. Furthermore, Avaxa prepared the information packages for the incumbent bank and the broader outreach, developed the broader go-to-market strategy (including the long-list of potential lenders to approach), led the negotiations on the Long-Form Term Sheet and LMA-based documentation and oversaw the entire refinancing process; and
- Throughout the project, Avaxa maintained a hands-on approach, ensuring quick response times, clear communication and management and alignment of all involved stakeholders (including Walraven’s Executive and Supervisory board and broad shareholder base consisting of family members).
