Tue 05/19/2020 12:29 PM
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TowerBrook Capital Partners has made a €100 million equity investment for a controlling stake in Irish car rental software company CarTrawler, according to a release. All existing shareholders including BC Partners are to exit the business, with management holding a small equity stake, sources told Reorg. The lenders have agreed to take a haircut on their debt and are to be repaid the remainder in cash by TowerBrook, they added. The company has no debt at present.

Before negotiating this deal, CarTrawler’s debt included a €160 million term loan B, which dropped to the mid-80s about a month ago, and a €30 million RCF. The term loan had a margin of 4.25% and was due April 29, 2021. Bank of Ireland, Lloyds and Royal Bank of Canada were original lenders on the deal.

CarTrawler has been in talks with its lenders regarding a debt-for-equity swap as the business suffered from declining revenue and liquidity pressure amid the Covid-19 crisis and government-initiated lockdown, as reported. The company’s revenue declined following flight and other transport cancellations after the travel industry ground to a halt due to the Covid-19 pandemic.

The group was also affected by having to pay out refunds as customers canceled existing bookings. Its clients include a range of airlines such as Aer Lingus, EasyJet, Norwegian and Wizz Air among others, many of which are highly levered and are seeking government support.

The company is working with Kirkland & Ellis, McCann Fitzgerald and PJT as advisors. Lenders, including Alcentra, are being advised by Arthur Cox, Sullivan & Cromwell and Deloitte.

The company said the €100 million equity injection will “strengthen (its) balance sheet during this period of unprecedented disruption to the global travel market.”

Matheson, Sidely Austin and Morgan Stanley advised TowerBrook, with additional guidance from Alvarez & Marsal and Boston Consulting Group.

--Aurelia Seidlhofer
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