Most of the company’s debt is coming due in 2025, which triggered the need for lenders to take an equity position, Michael Guarnier, managing partner at Evolution, told 9fin via email. The maturities include a secured revolver, first lien term loan, senior secured notes, and securitization facility, various public disclosures and rating agencies show.

The transaction had the support of the company’s previous private equity sponsor Madison Dearborn Partnersand guaranteed new liquidity that strengthen Sirva’s balance sheet, according to a press release.

“Having the support of these experienced investors positions us to capitalize on the tremendous opportunity we see ahead for our business and enables us to continue enhancing growth in our industry-leading mobility businesses,” Tom Oberdorf, company CEO, said in the release.  

Sirva's operational and leadership teams remain in place and will continue to focus on performance.

Restructurings are becoming more frequent among sponsor-backed companies with upcoming debt maturities in a higher interest rates environment, 9fin reported earlier this year. Private lenders taking control of distressed companies is also increasing. For example, a group of lenders assumed ownership of Specialty Dental in May and Imperial Optical handing control to Golub Capital last quarter.

Sirva has been struggling with a heavy debt burden for a few months, pressured by high mortgage rates, low volumes of corporate relocation, low US home sale values, and weak performance. In April, the company raised between $70m to $80m in debt already anticipating a broader restructuring, as reported by 9fin here and here.

In September 2023, Sirva had $113.7bn of liquidity, consisting of $93.7m of cash balance and roughly $20m of availability under its revolvers, according to a note from Moody’s in February.

KKR and Madison Dearborn declined to comment. A representative for BlackRock did not respond to a request for comment.

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