Teleplan International NV – Recapitalisation
http://www.teleplan.com/
Business Case:
In May 2007, the DAM Capital group was approached by Teleplan International NV, a leading global provider of after sales services to the IT and telecommunications industry. In 2005, Teleplan underperformed and entered a moratorium with existing lenders until October 2007, to allow sufficient time to refinance. The DAM Capital group quickly committed €22.5m of debt facilities that, combined with two other lenders, completed the necessary refinancing. The commitment withstood both the turbulence in the banking markets in the summer of 2007 and a late change in the lending group prior to the closing.
Tailoring the Solution:
Due to the level of in-depth fundamental analysis performed and belief in the current management team, the DAM Capital group had the flexibility and foresight to remain a steadfast and loyal partner during the credit crisis. As a privately-owned, long-term relationship lender, the DAM Capital group was able to maintain its commitment to the Company irrespective of the external market conditions.
Accelerating Results:
The DAM Capital group's commitment provided a lower cost funding package, which in turn provided Teleplan greater operational flexibility as well as room to finance the considerable growth potential that the Company has identified. The rise in Teleplan's share price following the announcement of the refinancing package signalled the positive response of the equity markets.