Shaping deals - case studies
Example A - £12bn re-finance of an airport company
Our client was seeking to raise around £12bn through a mix of re-financing existing debt and raising new debt. The client was seeking to raise additional debt and access to cheaper financing by securitising the cash flows from their regulated assets.
We assisted with their diligence process by undertaking a review of the financing model developed by another advisor and in doing so we enhanced our client's confidence as well as lending banks' confidence in the model.
Example B - Major UK transport/rail company
We helped a major transport company in their contract negotiations with their supplier of maintenance and infrastructure work on the network.
We assisted management in determining the key asset categories driving the maintenance costs: tracks, signals, stations and rolling stock and civil engineering.
We reviewed calculations for volume determination, pricing and cost aggregation as well as the identification, determination and application of maintenance tolerance profiles for each cost category and risk profiles on the overall asset category.
We did an analytical review of the integration of costs, volumes and risks, which were aggregated to arrive at the total expected maintenance costs under each of the asset categories and converted to an income stream based on the appropriate supplier profit margin.
We worked alongside management to identify, document and verify data flows. We assessed the relationship between their models and the process used to gather and exchange data. We suggested remediation activities and performed detailed testing on selected cost planning models in consultation with the client.
