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 | Wednesday August 10, 2022 |
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Another chapter has been written in the Bis Industries tale, which must be one of the most consistent sagas in Australian dealmaking in the past decade. |
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Ten years ago, Bis Industries was tucked up in KKR’s portfolio, had the full attention of KKR’s crack Capstone team, and was spinning yarns about saving miners millions, thanks to its data-driven approach to trucking ore. |
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KKR had a chance to float Bis Industries in 2013 but ended up pulling the deal when bookrunners Goldman Sachs, BoA and UBS came back with a deal that was half an EV/EBITDA point too low. |
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So KKR, having missed its exit and the chance to pay down debt inside Bis Industries, pushed on. The commodities cycle turned, negotiating contracts got harder and by 2017, Bis was sitting on a mountain of debt, a lot of which was payment-in-kind (PIK) notes to KKR. |
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In came a bunch of distressed debt funds, headed by The Carlyle Group’s Carlyle Strategic Partners and Varde Partners, who ended up taking control and recapitalising the business in a debt-for-equity swap in 2017. |
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The new owners had Deutsche Bank stitch together a funding package soon after, which was due to expire in April this year. |
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April came and, Bis being Bis, the company and its investors were trying to drive a hard bargain with lenders. The maturity date was kicked down the road until July, allowing for three more months of at times tense talks. |
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The refinancing was finally agreed on late last month, and settled this week. Street Talk has some of the details tonight, including a material equity top-up from Carlyle and Varde, the banking syndicate and the price paid for the debt. |
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Although it’s another chapter in Bis’ story, it’s not the end. It’s hard to see how Carlyle and Varde would own Bis forever, which is sure to keep it on bankers’ watchlists in the coming years. |
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Anthony Macdonald, Sarah Thompson and Kanika Sood
Street Talk Editors |
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They have tipped $130 million in fresh equity to help the mine site trucking company pull off a dramatic debt refinancing and three-year financial lifeline. |
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It’s infrastructure-minded investors at 10 paces in the auction for Australian chemicals group Ixom. |
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It’s three days since OZ Minerals whacked suitor BHP, and now it’s gone to its investors to make the case for its lighting-speed rejection. |
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The stockbroker has started rustling up interest in the debt-laden sulphate of potash producer, and is trying to put a syndicate together. |
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The South Australian family-owned radiator business has pressed play on its mooted float. |
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