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