About Storskogen
Storskogen is an industrial group headquartered in Sweden consisting of c.90 largely independent business units with c. 7,000 employees in 21 countries and a total turnover of SEK 19 billion. The company’s business model is based on acquiring and operating well-managed and profitable small- to mid-sized companies with leading positions in their respective markets. The activities are organised into three main business areas: Services, Trade and Industry
Background
As part of their preparation for an IPO, Storskogen wanted to refinance their existing EUR 700 million club loan and acquire an additional EUR 300 million of funding. Storskogen engaged Bankbrokers to:
- Design the future debt structure
- Initiate new as well as manage existing banking relationships and negotiations
- Coordinate and execute the debt raising
Solution
A multicurrency revolving credit facility with plenty of headroom for future organic growth and acquisitions, was required to provide the necessary flexibility for the company to pursue their growth strategy.
Due to the size of the facility and Storskogens international ambitions, it was necessary to coordinate a large syndicate of regional as well as international banks, to share the risk and match Storskogens current and future geographical footprint.
Several carve-outs were arranged to allow for ancillary facilities such as overdrafts, guarantees and leasing.
Result
Based on a dialogue with banks and other financial institutions across Europe, the market showed great appetite for the proposed facility of EUR 1 billion. This enabled us to establish a loan syndicate of 10 Nordic and international banks, and to achieve the expected terms and conditions.
Throughout the project Bankbrokers has been an invaluable and absolutely necessary partner and adviser for us with their expertise in debt financing. In order to execute a EUR 1,000m facility, a full understanding of the debt market from a debt adviser is required, but also good project management and sensitivity to what the customer wants. This and much more is what you get when you have Bankbrokers as an adviser.
Lena Glader, CFO
Storskogen