TIP Group raising additional liquidity under its Borrowing Base Facilities (BBF) and Asset Backed Securitisation Arrangements (ABS)
Amsterdam, 20 December 2023 - On 18 December 2023, TIP Group, a portfolio company of I Squared Capital, successfully raised additional funding to further grow and strengthen the business as well as support the implementation of its strategic planning.
The existing borrowing base financing arrangements (consisting of revolving and term debt) (BBF) were increased by €425 million totalling to €2,298,250,000. The pricing, tenor and structure remained unchanged. The BBF matures in December 2025 but benefits from a 2 year extension option. TIP welcomes 8 new lenders and is grateful to its existing lender group for their continued support and additional liquidity.
On 01 December 2023, the TIP Group also raised an additional €65 million via its asset backed securitisation arrangement (the ABS) with existing lenders, increasing the total capacity under that program to €265 million. The program matures in December 2025.
Bob Fast, President and CEO, explains: “The increase of our existing BBF and ABS allows us to grow the TIP Group further, both organically and non-organically, and to broaden our geographical presence. The additional funds from existing and new financing partners reflect the trust in our business which is underpinned by our growth in the past years and accordingly provides a strong platform to continue along that path.”
Hans van Lierop, CFO, continues: “The additional increase in our available liquidity by €425 million this year, including the commitments from 8 new banks, 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 few years which had proven resilient in challenging market environments. We are closing 2023 with a strong balance sheet and liquidity position to support our long-term vision.”
The additional funding will support capital investments and future acquisitions to strengthen further the businesses leading market position.
ABN AMRO ING Bank and Rabo bank acted as joint coordinators and active book runners to the TIP Group on the BBF transaction. DLA Piper supported the TIP Group as legal advisors, and Freshfields Bruckhaus Deringer acted as legal advisors to the financiers, each for the BBF and the ABS transactions.
About TIP Group
Headquartered in Amsterdam, the Netherlands, TIP is a leading provider of equipment and services within Europe and Canada. Located in 18 countries, and offering over 140 service locations, TIP specializes in providing the transportation and logistics sector with leasing, rental, maintenance, and repairs through a wide selection of trailer and truck equipment. For more information, please visit: https://www.tip-group.com
About I Squared Capital
I Squared Capital is an independent global infrastructure investment manager with over $36 billion in assets under management focusing on energy, utilities, digital infrastructure, environmental infrastructure, transport and social infrastructure in North America, Europe, and select high growth economies in Asia and Latin America. Headquartered in Miami, the firm also has offices in London, New Delhi, Singapore, Hong Kong, Taipei, and Sydney.
Questions or additional information, please contact:
Kapil Sharma
Treasury and Investor Relations Director
T +31 20 504 1677
M +31 621 105358
E kapil.sharma@tip-group.com
Rogier Laan
VP Sales and Marketing
M +31 622 948474
E Rogier.laan@tip-group.com
