About the Issuer
NRW is a diversified provider of contract services to the
resources and infrastructure sectors both in Australia and
internationally. These services encompass civil expertise
such as bulk earthworks and concrete installation,
contract mining works and drill and blast. NRW also
provides a refurbishment and rebuild service for both
earthmoving equipment and machinery. NRW was
established in Western Australia in 1994, and is currently
listed on the Australian Stock Exchange.
The issuer need
In June 2016, NRW had announced a debt rescheduling
with its existing financiers, in an effort align the repayment
with operating cash flow and facilitate full debt repayment
in December 2018. NRW was looking to simplify its debt
structure (the existing secured facilities were held with 4
separate institutions) and enable NRW to continue its
growth strategy with fewer restrictions.
The FIIG solution
FIIG was able to raise a $70m Secured Amortising Note for
NRW, allowing a full refinance of the existing facilities. The
Notes had the same equipment security as the financiers
being replaced, however provided longer tenor, less
upfront amortisation and the ability to incur further debt
(subject to certain conditions). The new financing
structure allows for NRW to reinvest excess cash flow for
growth.
Client testimonial
NRW CEO Jules Pemberton said, “The Note structure more
appropriately aligns our debt repayments to current
earnings and provides significant additional flexibility to
support growth opportunities. With a longer term to repay
the Notes, around $20m additional free cash flow will be
generated on an annualised basis compared to our current
repayment obligations.”