Rabobank and ABN AMRO Arrange Expanded Funding for TIP Group

TIP Group, a portfolio company of I Squared Capital and provider of equipment and services in Europe and Canada, raised additional funding, with its existing borrowing base financing arrangements (consisting of revolving and term debt) increased from €1.197 billion ($1.26 billion) to €1.391 billion ($1.47 billion). The pricing, tenor and structure remained unchanged. The borrowing base financing matures in December 2025 but benefits from a two-year extension option.

TIP Group also raised an additional €75 million ($79.08 million) in liquidity by creating a new green revolving borrowing base facility. This sub-facility is specifically sustainability linked, a reflection of TIP Group’s intentions to meet its sustainability ambitions and provide its customers with low emission assets. The proceeds of this green sub-facility may only be used to finance green assets in line with the Green Loan Principles published by the Loan Market Association.

“The increase of our existing BBF and a new sustainability linked green sub-facility provides flexibility to grow further, both organically and non-organically, and broaden our geographical presence,” Bob Fast, president and CEO of TIP Group, said. “The additional funds from existing and new financing partners reflect the trust in our business, underpinned by our growth in the past seven years, and provides a strong platform to continue along that path.”

“We originally structured and funded our RCF for €300 million with three banks in 2014, and increased those financing arrangements to €1,197 million of borrowing based linked revolving and term debt by 2021 with 11 banks and non-banks in the syndicate,” Hans van Lierop, CFO of TIP Group, said. “Further increase in the liquidity by €269 million, including commitments from two new banks, this year adds to the robustness of our balance sheet. There was a strong interest in the loan market driven by our business growth and performance over the last seven years, which had proven resilient in challenging market environments. We are closing 2022 with a strong balance sheet and liquidity position to support our long-term vision.”

The additional funding will support capital investments and future acquisitions. Rabobank and ABN AMRO Bank acted as joint coordinators, active bookrunners and joint sustainability coordinators on the transaction. DLA Piper supported TIP Group as legal advisors, and Freshfields Bruckhaus Deringer acted as legal advisors to the financiers.

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