A Public M&A Transaction
A leveraged public company was looking to partially finance the acquisition of the majority shares of another public company. Because the acquiring company had outstanding bank loans and bonds issued, it sought to diversify its financial sources. The loan secured by Plenus, was a mezzanine loan, secured by a first ranking fixed charge on the acquired company's shares. The loan structure included a securities release mechanism based on loan repayments. In consideration of the loan, Plenus was granted an equity kicker combined of shares and conversion rights based on the performance of the acquired company's shares.
A Private M&A Transaction
Private investors, via a Special Purpose Vehicle (SPV), were seeking financing for the acquisition of 100% of an Israeli company. As part of the credit application process, Plenus, together with the private investors, conducted thorough due diligence on the acquired company. Based on the due diligence outcomes, the existing level of bank debt and forecasted cash generation capabilities of the target company, Plenus decided to leverage a substantial portion of the acquisition transaction. The Plenus loan is secured by the acquired shares, bearing current interest and structures with accelerated principal payments. In consideration, Plenus was granted an equity kicker in a form of equity stake in the acquired company.