DETAILED
KNOWLEDGE OF
THE COMPANY
MADE IT HAPPEN
COOPERATION PAYS OFF
Rabo Securities team
Stefan Behrens, Aléxander Gelderman,
Ronald Batstra
Rabo Securities
(Frans van Slobbe,
Jacco Rijnbeek, Alexander Hoogendoorn,
Tim Servatius, Bart de Clerk
Stephen King, Herald Top
GFM (Syndications):
Rabobank Hilversum-Vecht en Plassen
Gosewijn Tulleners, Erwin Schols
Hans Deusing
.Marcel Veltrop
Greville Billyard
Ingrid Peters
What: Acquisition of CanalDigitaal by Providence Equity Partners
CanalDigitaal is the only provider of
digital satellite television and radio in the
Netherlands and Flanders, and has been a
cliënt of Rabobank since 2004. By late 2006,
the four management shareholders were
looking for ways to monetise their controlling
interest in the business, but also importantly
to bring in a strategie partner who shared
their vision of the future potential and
growth of their business, and could support
this with capital. Following a beauty parade,
CanalDigitaal awarded the sale mandate to
Lehman Brothers, and through their extensive
knowledge of the company, TMI and Rabo
Secs were able to confïrm that CanalDigitaal
would be a most attractive asset for
Providence Equity Partners. TMI was already a
lender to five different Providence companies
worldwide.
TMI and Rabo Secs took the idea to one of
the Senior Partners in the Providence London
office, with whom they had become well
acquainted with over recent years. Despite
being a much smaller transaction than
ones typically considered, Providence was
encouraged bythe story of CanalDigitaal,
and the company chose to retain Rabo Secs
in order to advise them on the purchase.
Through subsequent liaisons between the
CD shareholders and Providence, which were
facilitated by Rabobank, both parties chose
to avoid the onerous process of a full-blown
auction and a price was quickly agreed, with
the previous shareholders retaining a large
minority stake. Providence then mandated
Rabobank and RBS to jointly underwrite
and arrange the total debt facilities of €250
million, plus an additional €20 million of
working capital facilities. Due to the high
equity contribution and cash-generative
nature of CanalDigitaal, we were able to
structure a very cost-effective debt package
for the company. The deal was successfully
oversubscribed and concluded in June 2007.
The CanalDigitaal relationship will earn over
€5m in income for Rabobank in 2007, with
the realistic prospect of repeating the same
level of earnings in the next two years.
"As the Rugby World Cup reaches its climax
in France, it is fitting to reflect on the power
of teamwork within Rabobank, which helped
to make this string of transactions happen",
says Ed Smith, Global Head of TMI. "We have
incredible strength and depth in our cliënt
relationships and capabilities within the
Rabobank group; from our local Rabobank
network - which in this case is Rabobank
Flilversum - through to our own TMI group
- with Rabobank Securities and Product group
experts in GFM - and globally elsewhere.
When it works well, it is even more satisfying
than a try scored by my native Scotland,
perhaps even against the All Blacks", he
smiles. "Our aim is to ensure deals such as
CanalDigitaal happen more frequently than
Scottish rugby tries!".
issue 15 iauuary THE WORD 9
