WorkPac Group (“WorkPac”) is Australia’s largest privately owned workforce solutions business supporting primarily the mining, mining services, civil construction, medical & social care sectors.
Issuer Profile
WorkPac Group (“WorkPac”) is Australia’s largest privately owned workforce solutions business supporting primarily the mining, mining services, civil construction, medical & social care sectors.
The Issuer, the WorkPac Trade Receivables Trust No. 1 (The “Trust”) is a securitisation warehouse backed by a pool of trade receivables and WorkPac’s main source of funding. The receivables represent amounts owing to WorkPac with respect to labour supply and associated services provided to its highly diversified range of clients including blue-chip names such as BHP Billiton, Rio Tinto, Anglo America, Glencore and South32.
Issuer Need
After setting up the Trust with the existing senior financier and $30m Class B Notes in 2019, Workpac was seeking to refinance and reset the Trust. Understanding the benefits of having diversified sources of capital, WorkPac was seeking optimal flexibility and pricing as the Trust approached its maturity.
FIIG Solution
The FIIG Debt Capital Markets team’s expert analysis and understanding of WorkPac’s cash flow and working capital cycle identified the optimal capital structure. This resulted in the appropriate downsizing of the Class B Notes (after favourable terms from the senior financier increased the advance rate on the senior notes) helping to reduce the overall cost of debt while maintaining maximum flexibility.
Issuer Comment
WorkPac has had mezzanine financing arrangements in place arranged by FIIG for many years now, which has been a key part of our funding strategy and has provided flexibility and capacity when needed.
The team from FIIG have proven to be competent, collaborative and solutions focused, which has prompted WorkPac to revisit the arrangement and ultimately raise a new replacement bond that will underpin WorkPacs funding arrangements for the coming years.
We value the strong relationship and look forward to working with FIIG moving forward.