Renta enters into term loan B and upsizes SSRCF on the back of strong trading performance
Renta Group Oy (“Renta Group” or “Renta”) has reached an agreement to acquire Høyde-Service Utleie AS (“Høyde-Service” or “the Company”). Høyde-Service is a Norwegian general rental company with four depots located in Oslo, Sandefjord, Porsgrunn and Arendal. The Company has more than 20 employees and annual revenues of approximately NOK 90 million.
London, England, February 14, 2022. Ren10 Holding AB (the “Company” and, together with its affiliates, the “Renta Group”) announced today that it has priced and intends to enter into a euro-denominated term loan B facility up to €200.0 million maturing in 2028 (the “Facility B”) and a €25 million incremental upsize of the existing €75 million super senior revolving credit facility (the “SSRCF”).
Facility B will bear interest at a rate equal to EURIBOR (subject to a 0.0% floor) plus 5.25% per annum, subject to a decreasing margin ratchet based on the ratio of consolidated total debt to consolidated EBITDA. An original issue discount of 2.00% shall be applied to the principal amount of Facility B funded on the date of first drawdown.
The proceeds of the transaction will be used for (i) general corporate purposes, which may include, without limitation, the funding of acquisitions, (ii) the repayment of amounts drawn under the SSRCF and (iii) to pay fees, costs and expenses incurred in connection with the transaction.
Entry into the Facility B and the upsize of the SSRCF comes on the back of strong operating performance. Based on the Renta Group’s unaudited management accounts, it estimates that its net sales increased by €112 million, or 41%, from €275 million in the year ended December 31, 2021 to €387 million in the year ended December 31, 2022. Pro forma net sales increased by €133 million, or 46%, from €288 million for the year ended December 31, 2021 (on a pro forma FY21 perimeter) to €421 million for the year ended December 31, 2022 and organic growth (pro forma for acquisitions in FY21 and FY22) was 13% in the year ended December 31, 2022 as compared to the year ended December 31, 2021.
In the year ended December 31, 2022, Sweden, Finland, Norway, Denmark and Central and Eastern Europe accounted for 42%, 28%, 22%, 5% and 3% of net sales, respectively. Comparatively, in the year ended December 31, 2021, Sweden and Denmark, Finland, Norway and Poland accounted for 48%, 36%, 15% and 1% of net sales. In the year ended December 31, 2022, the split of net sales by product group was 35% ancillary services (2021: 31%), 16% lifts (2021: 15%), 13% tools and light equipment (2021: 15%), 7% scaffolding and weather protection (2021: 7% ), 8% site modules (2021: 8%), 7% power and heating (2021: 7%), 7% earthmoving (2021: 5%) and 7% other (2021: 12%).
The Renta Group estimates that EBITDA increased by €40 million, or 40%, from €101 million in the year ended December 31, 2021 to €141 million in the year ended December 31, 2022 and pro forma adjusted EBITDA increased by €52 million, or 49%, from €107 million in the year ended December 31, 2021 (on a pro forma FY21 perimeter) to €159 million for the year ended December 31, 2022 (on a pro forma FY22 perimeter). As of December 31, 2022, gross total debt was €542 million and net total debt was €513 million.
This announcement includes statements of expectations and other “forward-looking” statements within the meaning of applicable securities laws. Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. You should not place undue reliance on forward-looking statements and the Company does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.
This announcement shall not constitute an offer to sell or a solicitation of an offer to purchase securities.
The preliminary financial results as of and for the year ended December 31, 2022 presented above have not been audited or reviewed by the Company’s independent auditors, nor have any procedures been performed by its independent auditors with respect thereto. Such information has been derived from management accounts, is preliminary and is subject to financial closing procedures which have not yet been completed. While the Company believes these preliminary results and estimates to be reasonable, its actual results could vary from these estimates and these differences could be material. As such, you should not place undue reliance on this information and this information may not be indicative of the Company’s performance in the remainder of the financial year or any future period.