National Group Explores Financial Restructuring Options
The National Group, renowned as one of Australia’s premier equipment hire companies, is currently weighing potential options for financial restructuring, according to inside sources from The Reader Wall. This move includes refinancing initiatives and a ‘soft’ sales process, all of which are aimed at resolving substantial financial obligations.
A $250 Million Refinancing Effort
Reports from our sources affirm that the National Group, under the astute guidance of its founder and CEO, Mark Ackroyd, is actively negotiating with potential lenders and buyers. The primary objective is to refinance its syndicated asset-backed facility through a stunning $250 million deal.
The initiative is being carried out in partnership with a major creditor, OCP Asia. This move denotes the company’s proactive approach to addressing its financial responsibilities, and shows its commitment towards uncompromised operation and service delivery.
The ‘Soft’ Sale Process
In parallel to the aforementioned effort, Jefferies Australia has initiated a ‘soft’ sale process for the National Group. The purpose of this approach is to evaluate potential interest amongst the acquirers. It will provide a clearer picture regarding the company’s value in the market, thus aiding the ongoing refinancing efforts.
Facing Significant Financial Responsibilities
The National Group’s current actions primarily aim at tackling considerable financial responsibilities. The company is accountable for a staggering $425.6 million in non-current borrowings with an additional $38.5 million debt scheduled to be paid within the succeeding 12 months.
Focusing on the ‘Super Senior’ Loan
The company’s refinancing initiative centers particularly on a $168 million ‘super senior’ loan, subject to an 11 percent interest rate above BBSW. The repayment for this loan is due on August 30, which adds to the immediacy of the restructuring plans.
Furthermore, OCP Asia has a $206 million loan with the National Group. This loan carries a high-interest rate of 16 percent and is positioned subordinate to the ‘super senior’ loan, with repayment due in February 2025.
These significant monetary commitments necessitate the restructuring, conveying the need for comprehensive planning and successful execution of the current activities pursued by the National Group.
