Thu 03/10/2022 13:16 PM
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Alcumus sale financing update by Reorg's EMEA Middle Market team.

Relevant Document:
Financial Report FY’20

A lender consortium led by Golub Capital and Park Square SMBC including Hayfin, KKR Credit and Partners Group has provided a £240 million cov-lite unitranche leveraged at 7.5x to support Apax Partners’ acquisition of U.K. risk management software company Alcumus, sources told Reorg. The facility was priced at SONIA + 600 bps, the sources added.

The financing includes an RCF provided by Park Square and SMBC, sources said.

Alcumus was marketed off EBITDA of £32 million. The new lenders replace previous incumbent lender Alcentra.

Apax Partners acquired Alcumus from Inflexion in a transaction that values the company at over £600 million and generates a return of 5.9x for Inflexion, representing its largest ever cash return, according to Inflexion. The sale was run by investment bank Harris Williams.

As at Dec. 31, 2020, Alcumus’ total debt amounted to £197.6 million. Cash and cash equivalents totaled £12.1 million and net leverage was 9.4x. The company also had a £5 million revolving credit facility due in November 2024, which was undrawn at the end of 2020.

In December 2020, the company issued £20 million of PIK notes to Alcentra, which are repayable in December 2025 and interest is charged at 12%, according to Alcumus’ financial report.

The company’s capital structure, as of December 2020 (the company’s latest annual report filed with Companies House) is below:

























































































































































Alcumus Group Ltd.


12/31/2020

EBITDA Multiple

(GBP in Millions)

Amount

Maturity

Rate

Book


Finance Leases

1.3



Total Finance Lease Liabilities

1.3

0.1x

£5M RCF due 2024

-

Nov-2024


£30M Bank Loan (Facility B1) due 2025

30.0

2025

GBP LIBOR + 2.750%

£103M Bank Loan (Facility B2) due 2025 1

104.7

2025

GBP LIBOR + 7.000%

Total Bank Debt

134.7

6.9x

£20M PIK Loan Notes due 2025

20.0

Dec-2025

12.000%

Shareholder Loan Notes 2

41.6


12.000%

Total Shareholder and Other Debt

61.6

10.0x

Total Debt

197.6

10.0x

Less: Cash and Equivalents

(12.1)

Net Debt

185.5

9.4x

Operating Metrics

LTM Revenue

54.7

LTM Reported EBITDA

19.7


Liquidity

RCF Commitments

5.0

Plus: Cash and Equivalents

12.1

Total Liquidity

17.1

Credit Metrics

Gross Leverage

10.0x

Net Leverage

9.4x

Notes:
1. Includes additional amount of £13M issued under the facility B2.
2. Maturity includes £846k due Dec. 2022 and £38.95M due Dec. 2023.



Alcumus is a risk management and ESG platform that delivers software technology-enabled services in the areas of environmental, health and quality management to companies. The company has more than 750 employees across offices in the U.K., North America and the Asia-Pacific region and serves 45,000 customers globally.

Golub Capital, Park Square, Hayfin, KKR Credit and Partners Group declined to comment. Apax Partners did not respond to Reorg’s request for comment at the time of the publication.

--Lucía Camblor
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