Hamilton Locke is delighted to have acted for Indoor Skydive Group Australia Limited (ISAG) on its successful refinance and restructure of existing debt, enabling ISAG and its subsidiaries to reset with a cleaner balance sheet and focus on growing its business in a post-COVID-19 economy.
ISAG announced to the ASX on Thursday, 18 March 2021 that the restructure had enabled a net tangible asset boost to ISAG by AUD$7.7milion. This was achieved after negotiating a AUD$5.6million write-off on existing debt owing to Westpac, together with an associated discharge of liabilities and release of securities, and a new AUD$4millon senior secured term loan facility provided by Causeway Financial. Existing debt of ISAG owing to Birkdale (a key stakeholder in the ISAG group) was also restructured to allow for an AUD$1.2million conversion into equity (subject to shareholder approvals) and capitalised interest for two years, all of which will be subordinated to the Causeway debt.
Hamilton Locke advised on all finance documents required to restructure the debt of the ISAG group, including negotiating a suite of finance and security documents to be entered into with Causeway, a suite of settlement and release documents in respect of Westpac liabilities, and the amendment and restatement of existing Birkdale loan agreements. Vantage Performance acted as financial and restructuring advisers to ISAG.
“This positive result in negotiations and repairing the balance sheet marks the end of over two years of commitment and hard work on behalf of all ISA Group employees, officers and the board of directors. The result has positioned ISA Group on a stable footing to now focus on growth opportunities including the continuation of the rollout of virtual reality facilities, and the development of its immersive training and simulation business” said ISAG CEO, Wayne Jones.
Commenting on the transaction, Hamilton Locke partner, Zina Edwards said: “We are thrilled to have acted for the Indoor Skydiving Group on this complex and interesting transaction, with many moving parts and risks to be managed. Seeing this transaction through to completion is a great result for the Indoor Skydiving Group and we look forwarding to seeing the continued success of this business as they work on growing their retail footprint and expanding their facilities”.