Case Study

Mining Services Fleet Valuation

Hilco delivered a fast and accurate valuation to establish a borrowing base for a mining services corporation who was seeking refinance in an ABL transaction.

Client Challenge

Our client is a large Australian mining services corporation that provides wet and dry hire services to mining companies across Australia.

The corporation sought to refinance their existing debt to reduce cost of funds. An accurate valuation of their P&E collateral was critical in presenting the business to the capital market. A private debt firm attracted to this opportunity sought to use an ABL structure to support the loan, creating the need for a comprehensive business and fleet assessment for credit approval.

Our initial engagement started as an independent opinion of Fair Market Value in place of the fleet and was completed with a Net Orderly Liquidation Valuation of the fleet and an Accounts Receivable Audit.

Hilco supported both parties through the funding cycle.

Hilco Solution

Hilco’s FMVIP (Fair Market Value In Place) valuation along with our independent perspective assisted the corporation in attracting private debt from US markets.

To construct the borrowing base for the preferred ABL structure requested by the private debt firm, Hilco performed an AR field exam and a Net Orderly Liquidation Valuation on the Fleet.

By understanding credit departments view on risk, we were able assist in the successful refinance of the existing debt and achieve the maximum loan opportunity for the corporation.

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Highlights

Hilco were able to support the strengthening of the relationship between the lender and borrower, acting as an independent advisor to both.

The work delivered by the Hilco APAC team directly assisted the corporation to maximise the borrowing base, through its deep understanding of the industry, asset class and risk concerns of the Lender.

 

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