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The acquisitions of Medialaan and Independer had increased the group’s reliance for funding on its relationship banks, which made the company consider diversifying its financing sources. Following the thorough assessment of the various alternatives available together with DCA, DPG Media went on to successfully issue its inaugural private bond issuance at the end of June.
The structured approach with DCA allowed DPG Media to choose the best financing option fitting their strategy and capital structure, minimising placement costs and execution risk while optimising in parallel the terms and conditions on its core Club Deal Facilities with its banks.
“Deloitte provided us with strong support on the transaction. As a result, DPG Media, being a first time issuer, managed to reduce execution risk, reduce overall costs, and carry out a successful issuance at attractive conditions. Moreover, DCA objective and independent expert view on the transaction was much appreciated in the light of good governance.”
Successful funding diversification
The leading media company was looking to take advantage of the low interest rate environment to attract long-term funding, diversify its funding sources, relieve its banks of the pressure of being the main providers of financing to the group and reinforce its capital structure. Deloitte, the only Big 4 in Belgium to provide debt advisory services in a fully comprehensive manner, assisted the financing team throughout the entire process from the independent expert assessment of the alternatives at the start to the closing of this strategic project end of June.
After the initial assessment of the alternatives, a detailed RFP was launched for the two retained funding options, namely a private bond solution and a Schuldschein, inviting selected expert banks to take part in a ‘beauty parade’. Following analysis of the proposals, the EU PP (Euro Private Placement) was retained as most suited funding alternative as well as four banks to place the bond towards institutional investors.
This resulted at the end of June in the successful issuance of DPG Media inaugural EUR 150m 7Y private placement with an attractive coupon of 2.15%. The issuance was significantly oversubscribed allowing DPG Media to increase the size of the bond from the initial target of EUR 100m.
“DCA helped us diversify and optimise our financing structure which is now ready to meet our future growth ambitions.”
Optimising the wider financing structure
In parallel with the bond issuance, DCA was also instrumental in assisting DPG Media to further optimise the terms and conditions of its Club Deal credit facilities with its relationship banks, making it fit to accommodate the further growth ambitions of the group.
"DCA is part of the Deloitte end-to-end mergers and acquisitions (M&A) approach that integrates transaction due diligence, business valuation, corporate finance advisory, and M&A value creation services."