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Dean & Reddyhoff Portfolio of marinas refinancing
Case studies

Dean & Reddyhoff Portfolio of marinas refinancing

£14m increase in borrowing capability
8.3x ND/EBITDA
7 year tenor
Background
  • Dean & Reddyhoff (D&R) owns and operates a portfolio of marinas located on the South Coast of England.
  • The firm was acquired by a new shareholder group in 2015 by means of a rescue financing funded by junior notes. Senior debt was raised shortly after.
  • JCRA was mandated to obtain competitive loan terms to refinance some of the junior notes and existing senior debt.

The request was for:

  • Senior debt corresponding to 60% LTV – secured by the portfolio of marinas.
  • 5+ year term funding allowing flexibility for an exit.
  • Ability to distribute cash to the parent.
Our Approach
  • After reviewing the existing portfolio of assets and understanding the client’s strategy going forward, JCRA together with D&R and the new shareholder group identified the key features required for this transaction.
  • JCRA presented the proposal to a small number of carefully selected potential lenders and invited them to provide their best funding offers.
  • JCRA advised D&R on the preferred set of terms by leading term sheet drafting and negotiation.
  • JCRA then liaised between D&R and the preferred lender until reaching final credit approval. We also assisted with legal documentation from first draft to financial close.
  • JCRA’s advice extended to the unwind of the existing hedging position and to the set up of a new hedging strategy.
Benefits
  • Achieved highly competitive and flexible terms due to our ability to benchmark offers and access lenders which have appetite for this type of asset.
  • JCRA successfully marketed the transaction as a Real Estate financing piece eliminating the requirements for leverage restrictions and instead focusing on LTV for debt sizing.
  • This allowed D&R to increase its borrowing capability from £16m to £30m while maintaining healthy ICRs and achieving ND/EBITDA of 8.3x.
  • The financing closed with a 7y tenor, exceeding initial expectations of a 5y with limited back ended amortisation.
  • Flexibility to allow the shareholder group to exit without punitive prepayment fees or onerous breakage costs.
 

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