Recapitalisation and new capital raise for Onsite
Onsite Rental Group has reached agreement with its lenders on a comprehensive recapitalisation of its balance sheet that positions the Company on a sound financial footing, allowing Onsite to pursue organic growth opportunities and acquisitions.
The recapitalisation brings a range of benefits to Onsite, including:
- A material reduction in debt with an aligned ownership structure
- Significant annual cash interest savings
- New senior facilities of at least $30m to enhance liquidity
- Extension of existing debt maturities, with no material maturities over the next 4.5 years
- All drawn TLB and Revolver debt outstanding on the date of completion of the Recapitalisation, including any future drawings from now until completion, will be treated equally and on a pro-rata basis
The Recapitalisation strengthens Onsite’s operations, allowing the company to further invest in its fleet, provide an expanded suite of products to service customers’ needs and pursue additional growth opportunities.
Onsite has received overwhelming support from shareholders and lenders for the recapitalisation, including all of its shareholders and over 97% of its lenders. The recapitalisation will be implemented through the unanimous consent of lenders or by way of a scheme of arrangement, which if required, would be expected to close by mid-November.
Mike Foureur, CEO of Onsite, said: “Onsite has emerged from the recent challenging market conditions in the equipment hire industry a much stronger and more resilient business. We now have the balance sheet flexibility to further invest in our fleet and better support our customers.
“We have strong alignment between shareholders, lenders and senior management to pursue our growth agenda. We also have the resources to deliver on that agenda in a market that offers clear opportunities for growth.”
“Onsite is ideally placed to capitalise on the resurgence in infrastructure investment, with more than $75 billion of Government funds committed to infrastructure projects over the next 10 years. We also expect the mining and resources sector to continue as an important part of our business and provide opportunities for growth, albeit more in line with the historic long-term growth trend.”
“I would like to acknowledge the support of all of our stakeholders, and in particular our customers and employees, whose ongoing commitment has been invaluable.”
Contact: 13 40 40 or visit: www.onsite.com.au
