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Service: Funding
Exclusive Financial Advisor for Kuantum Papers Limited (KPL) for its debt consolidation and interest cost rationalization exercise
Deal Highlights
The Company posted remarkable turnaround post FY21 attributing to industry upswing, pent up demand post Covid & benefit from cost efficiency from its brownfield project
To streamline debt structure and cost efficiency, KPL along with Nuvama team, has undertaken debt consolidation and refinance exercise to achieve –
Optimization in interest rates
Reduction in number of lenders
Induction of strong lender to support its growth in future
Nuvama facilitated sanction by new lender to refinance debt of its 3 existing lenders at competitive terms
This new facility has now created commercial benchmark for existing lenders
Nuvama Contribution
Identified the opportunity at right time and took management on board for the same
Negotiated commercials with prospective lenders and remained first point of call for all stakeholders, smoothly navigating the process till closure
Strategized framework to approach existing lenders for smooth transition to incoming lender
End to end handholding of the Company on all transaction related matters till closure
Exclusive financial advisor to the Lagnam Spintex Limited
Deal Highlights:
Augmented project finance for brownfield expansion of spinning capacities of the Company for installation of additional ~41,500 spindles for manufacturing of compact cotton yarn with total capital outlay of Rs. 2,180 Mn.
This proposed expansion would increase the Company’s capacity more than two-fold and would improve economy of scale
The facilities were arranged at competitive terms from the lenders with fine spread over banks’ 1 Year MCLR rates, optimal security covenants and capital mix
Nuvama Contribution
Facilitated induction of new lenders along with existing banker to secure best benchmark terms and conditions
Secured sanctions of almost 3 times of the funding requirement, which helped achieve optimal funding structure for the project
Prepared detailed Information Memorandum and satisfactorily addressed credit queries for lenders with suitable capital structuring
Played pivotal role in coordinating with the lenders and all external agencies and remained their first point of contact