Mining Services Fleet Valuation.

The Insight Valuations team delivered a fast and accurate valuation to establish a borrowing base for a mining services corporation who was seeking refinance in an ABL transaction.

The Client Challenge
Our client is a large Australian mining services corporation that provides wet and dry hire services to mining companies across Australia. The corporation sought to refinance their existing debt to reduce cost of funds. An accurate valuation of their P&E collateral was critical in presenting the business to the capital market. A private debt firm attracted to this opportunity sought to use an ABL structure to support the loan, creating the need for a comprehensive business and fleet assessment for credit approval. The initial engagement started as an independent opinion of Fair Market Value in place of the fleet and was completed with a Net Orderly Liquidation Valuation of the fleet and an Accounts Receivable Audit.

Insight Valuations supported both parties through the funding cycle.

Insight Valuations Solution
Insight’s FMVIP valuations along with our independent perspective assisted corporations in attracting private debt from US markets. To construct the borrowing base for the preferred ABL structure requested by the private debt firm, Insight performed an AR field exam and a Net Orderly Liquidation Valuation on the Fleet. By understanding credit departments’ view on risk, Insight Valuations are able to assist in the successful refinance of existing debt and achieve the maximum loan opportunity for corporations.

Highlights

• The Insight Valuations team were able to support the strengthening of the relationship between the lender and borrower, acting as an independent advisor to both.
• The work delivered directly assisted the corporation to maximise the borrowing base, through its deep understanding of the industry, asset class and risk concerns of the Lender.