Red Funnel Group (“Red Funnel”) is a leading ferry operator which provides services between the Isle of Wight and mainland United Kingdom.
DC Advisory (“DC”) was engaged by Infracapital to provide debt advice on the refinancing of Red Funnel’s senior facilities in addition to restructuring its existing interest rate swap.
DC ran a comprehensive refinancing process engaging various sources of liquidity across a number of detailed work streams including financial modelling, due diligence, debt and swap structuring and full documentation negotiations.
DC delivered a positive outcome in meeting the company’s refinancing objectives in a difficult and volatile market, particularly in light of Brexit.
The highly successful result included bringing in new senior liquidity including four lenders as well as new hedge counterparties while maintaining a competitive cost of debt; effective restructuring of the existing long dated interest rate swap with reduced mark-to-market; successfully negotiating a suitable cash sweep profile to accommodate the impact of seasonality in the business as well as a capex facility to assist in the continued growth of the business.