Testing rollup Phenna readies private credit takeout
- Ryan Daniel
- +Laura Thompson
- + 1 more
UK-based testing company Phenna Group has left investors feeling conflicted over its ÂŁ845m-equivalent dual tranche TLB (euros and sterling) and delayed draw term loan (DDTL) deal. Lenders flagged concerns such as weak cash flow due to its acquisition-heavy past, and its UK concentration, but appreciated its strong market position and high recurring sales.
The new TLBs, alongside an equity injection of ÂŁ130m, will refinance existing debt, finance pending acquisitions of ÂŁ80m, deferred consideration payable of ÂŁ26m (the partial cost of previous acquisitions) and transaction expenses.
The company’s existing private credit debt funded its buyout by Oakley Capital in 2022.