King & Wood Mallesons has acted as Australian counsel for 9 Joint Lead Arrangers, including Bank of America and Deutsche Bank, on Algeco Scotsman Group’s US$3.4 billion acquisition and debt financing, which included a US$1.25 billion revolving asset based loan (ABL), one of the largest ABLs to be completed in the Australian market.
As part of Algeco’s new long term capital structure, the financiers provided a US$1.25 billion ABL facility and purchased US$1,075 million aggregate principal amount of 8.5% senior secured notes due 2018, €275 million aggregate principal amount of 9% senior secured notes due 2018 and US$745 million aggregate principal amount of 10.75% senior unsecured notes due 2019. Algeco is owned by TDR Capital, a leading UK-based private equity firm.
The financing closed on 11 October 2012 and funded Algeco Scotsman’s acquisition of the Australian-based Ausco Modular and NZ-based Portacom businesses. The financing was also provided to the new combined group to refinance existing debt and to provide for the combined group’s ongoing working capital needs. The ABL facility and notes are secured by a security package over the assets of the combined group located in Australia, NZ, US and various other jurisdictions.
Algeco is a leading global business services provider focused on modular space and secure storage solutions providing a comprehensive range of portable temporary and permanent buildings, and its acquisition of Ausco Modular and Portacom, leading providers of modular buildings in Australia and New Zealand, will provide Aldebt ageco with a significant market presence in the Asia-Pacific region, substantial exposure to high growth markets, and expansion of the group’s current geographic footprint.
The King & Wood Mallesons team was led by Banking Partner Richard Hayes, who was assisted by other members of the King and Wood Mallesons team including Senior Associates Greg Nicholas and Will Stawell (banking), David Anderson (tax) and Stuart Courtney (stamp duty) and Associates Herina Lee and Audrey Wang (banking). Skadden, Arps, Slate, Meagher & Flom LLP acted as US and UK counsel for the Joint Lead Arrangers and Cahill Gordon & Reindel LLP acted as US counsel for the initial purchasers of the Notes.
Richard Hayes said: ” We were delighted to assist our clients on one of the largest ABL financings to be completed in the Australian market coupled with a successful international bond issuance in what is currently a very active market. It was an exciting cross-border deal which involved us bringing together experts from our banking, tax and stamp duty teams to structure, negotiate and document the deal in the most efficient manner. This deal also provides further evidence of the growing popularity of ABL facilities worldwide which provide banks with excellent security coverage and borrowers with increased liquidity.”
