TIP, a portfolio company of I Squared Capital, increased its existing revolving credit facility (RCF) from €967 million ($1.07 billion) to €1,150.5 million ($1.27 billion) with no change in pricing or structure.
TIP also raised €274.5 million ($304 million) in the private placement term debt markets for the first time. The term loan tenor is seven years.
The RCF facility was initially established in 2014 for five years with three banks in the syndicate and a total amount of €300 million ($332 million). The facility was refinanced in December 2018 to €967 million maturing in December 2023.
The funding round was substantially oversubscribed and will partially support the recently announced PEMA acquisition in Europe, other capital investments and future acquisitions to strengthen further the businesses leading market position.
“The increase of our RCF and the introduction of new term loans provide liquidity to close our PEMA acquisition while providing flexibility to grow further both organically and in-organically and broaden our geographical presence. The addition of new financing partners reflects the trust in our business underpinned by our growth in the past five years and provides a strong platform to continue along that path,” said CEO Bob Fast.
Rabobank acted as sole lead arranger and advisor to TIP and I Squared Capital on the transactions.
Headquartered in Amsterdam, TIP is one of Europe and Canada’s equipment service providers, specializing in trailer leasing, rental, maintenance and repair, as well as other value-added services.