As Senior Finance Manager, Strategic Projects, I was requested to work on a major (US$ 250m) debt for equity transaction.
- Provided the financial expertise behind an intercompany debt-for-equity swap transaction.
- Full and comprehensive analysis of the company’s internal debt, its makeup (preference shares, current account, long-term debt), its history, and trends.
- The drafting and rollout of several internal loan agreements to facilitate worldwide debt to be consolidated, in anticipation of the swap.
- Valuation of the subsidiary that was to issue the equity. The final valuation used both DCF and EBITDA multiples to value the company.
- Execution of the transaction and the associated governance.
WHAT WENT WELL
- Transaction executed on time and at the value forecasted, concluding the consolidation of two legal entities and management structures.
- Clearly defined process documentation and communication to senior management and Board of Directors
- Appreciation of external factors (markets, economy, political environment) on the value of the company.
SITA (Société internationale de télécommunication aéronautique)