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Claranet refinances for European growth

Claranet has refinanced with a long-term facility for the company. Goldman Sachs’ Private Capital Team has joined Claranet’s existing finance providers RBS, ABRY Partners and Ares Management, L.P.’s European Direct Lending Team. The latest refinancing follows a financial year-end in June 2014 that saw 24% revenue growth across Europe reaching a total of £127.4m (€175.8m).

Claranet is engaged in an acquisition strategy, expanding its product portfolio and increasing its customer base and overall market position. This led to an adjusted EBITDA figure of £23.0m (€31.7m) – 97% up on the company’s 2013 result of £11.7m (€16.1m). The total contracted future revenue of the Claranet Group as of 30 June 2014 was in excess of £185.7m (€256.3m).

Commenting on the new agreement, Charles Nasser, Claranet Group founder and CEO said: “Our new arrangements reflect the strength of Claranet and the confidence of our funders as we continue to expand both organically and through acquisition across Europe. Our financing now extends to 2020 and achieves greater flexibility for us as we plan for further growth and the development of our products and services.

“RBS, Ares and ABRY, our existing funding partners, have shown long-term commitment to Claranet and our strategy. Additionally, we are thrilled to partner with Goldman Sachs to support our evolution.”

Ares and Goldman Sachs have provided a unitranche facility of £82m with RBS providing further support of a committed facility of up to £25m.The arrangement takes advantage of the lower cost of debt made possible from Claranet’s strengthening position, and gives greater flexibility to the company as it continues to grow across Europe.

Mohith Sondhi, Director, Structured Finance Corporates at RBS said: “We believe the market remains fragmented in continental Europe and hope with the support of committed facilities in what we regard as an innovative structure, that Claranet will carry on their impressive growth and the successful delivery of their strategy.”