Background

  • Last Mile Infrastructure Group (LMI) was founded in 2006 as Energetics and rebranded in 2019, following the acquisition by Infracapital Partners (Infracapital) in 2018
  • LMI is one of the UK’s largest Independent Network Owners, owning and operating more than 450k of last mile electricity, gas, and water connections servicing residential and commercial customers
  • LMI has a proven track record and expertise in the design, build, and adoption of last mile infrastructure that is essential to connect new buildings across Great Britain
  • LMI receives regulated, inflation-linked tariffs for the lifespan of installed connections, and benefits from a well-established regulatory framework

 

Process

  • Having advised Infracapital on the 2018 LMI acquisition, DC Advisory (DC) was engaged in 2021 to provide debt advice on the platform refinancing of the existing bank debt facilities
  • The refinancing included a number of detailed workstreams covering debt structuring, financial modelling, due diligence, full documentation negotiations, and overall process management
  • DC ran a comprehensive and competitive refinancing process  - across both bank and institutional funding sources - with the aim of establishing a long-term financing platform to support LMI’s future growth

 

Outcome

  • DC delivered a market leading outcome to meet LMI’s objectives, including:
    • Establishment of a long-term multicreditor financing platform, including facilities provided by bank and UK/USPP institutional lenders
    • Securing highly competitive implied investment grade economics, including long-term institutional debt of 15 and 20 year tenor, extending LMI’s debt maturity profile
    • Secured significant committed undrawn facilities and a delayed draw institutional tranche to fund LMI’s growth in its installed portfolio
    • Sustainability-linked debt provided by both bank and institutional lenders
  • DC leveraged its previous experience with the asset and extensive regulated infrastructure sector knowledge to successfully lead this process
  • This transaction provides a flexible financing package with competitive terms, designed to facilitate LMI’s business plan and growth