How our Specialised Lending Division is helping organisations grow

Our clients are the reason we’re in business, which is why our Specialised Lending team is dedicated to helping them achieve their objectives – providing customised acquisition funding solutions for companies in the mid-market space in South Africa.

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The case studies below show some examples of how our lending solutions have helped our clients grow and succeed:

Case Study 1 – Acquisition funding for BEE investor in the engineering and construction industry

Our Specialised Lending division had the opportunity to fund a leveraged buyout for 100% of the share capital of an engineering and construction company by a BEE consortium, which included key management. Certain unique features of the business meant that our team had to develop a robust deal structure while complying with the seller’s critical deadlines. We were responsive to both the client’s and the seller’s needs and added significant value in optimising the structure of the transaction while dealing with very tight timelines.

Case Study 2 – Growth finance in the unsecured lending industry

Our Specialised Lending division was approached to provide a multi-drawdown facility to a microfinance company for it to be able to expand its loan book. With operations spanning 21 years, the company is a best of breed microfinancier, especially from an ethical and process perspective. They service clients directly through over 60 branches across South Africa, as well as through payroll lending, and also offer insurance products, funeral policies and credit repair services. We recognised our client’s unique position and were able to craft a solution that would enable them to unlock significant growth in their business, while retaining our ability to increase our facility.

Case Study 3 – Working capital in the telecommunications industry

Our Specialised Lending division was approached to provide expansion capital to a high-growth business involved in the build and transfer of fibre network infrastructure. The financing was mainly based on the company’s order book, and its past performance in executing similar projects. The facility was tailored to our client’s needs and resulted in a revolving credit element with a capital holiday. Our solution also incorporated an option for the client to roll the facility forward in support of ongoing growth and a profit participation for Sasfin.

Case Study 4 – Bridging capital facility in the ICT industry

We provided a JSE-listed entity with a short-term bridging facility in order for them to fund an acquisition. Since the client intended to raise equity for this acquisition in due course, the facility was given for a period of 6 months, with the option for them to extend it for a second term. Capital was repayable as a bullet at the end of the term, and we had the option of having the loan repaid in new shares to be issued by the company.

 

To find out more on Specialised Lending opportunities we offer click here

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About the Author
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Paul Pretorius

Specialised Lending, Sasfin Capital

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