PwC Debt & Capital Advisory advises Hyve Group plc on a £250m debt raise

31/12/19

PwC Debt & Capital Advisory acted as debt advisor to Hyve Group plc on its recent acquisition finance raise. Hyve Group plc is listed on the London Stock Exchange and is an international organiser of exhibitions and conferences.

On 18 December 2019, Hyve Group plc announced the completion of its acquisitions of Shoptalk and Groceryshop, two US-based market-leading events focused on e-commerce for the retail, grocery and consumer packaged goods industries. Shoptalk has become the leading US e-commerce event and fast-growing Groceryshop is already the leading grocery e-commerce event. Shoptalk and Groceryshop focus on developing innovative, content-led events supported by bespoke technology and workflows developed to support its hosted meetings offering.

The consideration for the transaction was $145m and was financed through an amendment and restatement of Hyve' Group plc’s existing debt facilities and a new equity placing. The existing senior secured term and revolving credit facilities were amended and extended with Hyve's existing bank syndicate, also bringing in one new bank, to increase total aggregate commitments to £250m, extend the debt maturity to 4 years and improve the existing key commercial terms, including financial covenants, to provide the group with additional operational flexibility. Pro forma net leverage was between 2.0x and 2.5x at closing and is expected to be below 2x by the FY20 year end, in line with the group's targeted level.

The PwC Debt & Capital Advisory team was led by David Godbee and supported by Sandeep Pradhan, Sofia Butt and Cosi Nicolaides.

PwC also provided commercial, financial and tax due diligence services on the target, as well as tax structuring advice, in connection with the deal.

“The ability to raise the debt during a tight timeframe was a critical factor in the successful completion of the transaction. David and his debt advisory team integrated seamlessly with the wider Hyve deal and advisor team and we achieved the pre-Christmas closing date we had agreed with the vendor. The debt advisory team also helped us to improve the key financing terms in our existing debt package. The risk of non-completion would have been much greater and the challenge would have been much more difficult without them.”

David HanHead of Treasury, Hyve Group plc

“It has been great to work with the Hyve deal team on this transaction which supports Hyve's evolution into a next generation events business focussed on providing market-leading shows globally. The financing package provides firepower for future growth, together with additional operational flexibility, to facilitate the group's strategic goals.”

David Godbee Partner, Debt & Capital Advisory

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David Godbee

Partner, Debt & Capital Advisory, PwC United Kingdom

Tel: +44 (0)7740 242013

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