Significant refinancing of debt

A UK company was seeking to carry out a significant refinancing of its debt (> £0.5bn) with a number of lending parties.

Barnett Waddingham advice

Our advice was provided to multiple senior and mezzanine lending parties - nine parties in total.  The advice covered both the financial issues and commercial considerations surrounding the defined benefit pension scheme obligations which were material in the context of the company and therefore its potential ability to repay the debt.

The potential implications of auto-enrolment were also material given the number of non-pension members and the parties focus on available cashflow.

Through our due diligence, including analysis of the valuation in progress and the prospective funding requirements, all lending parties were able to reach a sufficient level of comfort to proceed with the refinancing of the company’s debt.