Debt capital raising for a beverage company in Uganda

Debt Capital
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Situation

The unexpected loss of the South Sudan bottled water export market arising from fragility, political crisis, and insecurity, coupled with a depressed Ugandan consumer market and depreciation of local currency, pushed our client’s business (a Uganda beverage company) to the verge of collapse.

The client’s ability to honor financial obligations and loan covenants was negatively affected, leading to a near loss of the business through foreclosure.

Industries
Business Advisory Services
Manufacturing & Consumer Goods
Finance & Investment
Economic Growth & Trade
Capital Raising & Impact Investing
Engagement

ORI helped reverse the situation by applying our business and financial advisory expertise to advise on debt restructuring based on a more realistic business plan. We then prepared a refinancing strategy and discussed it with various financiers, and we successfully helped raise growth capital for the enterprise.

ORI's comprehensive support enabled the client to secure over US$3.5 million, a significant achievement. Our services included:

  • Providing investment readiness support, including the professionalization of finance function, improving financial management and overall governance.
  • Modeling stock-keeping units, revenue, cost, and margins of various beverage products and identifying opportunities for revenue acceleration.
  • Developing investor packs, building financial models and growth plans, and identifying opportunities to improve EBITDA and confidently engage capital providers.
  • Finding a financier that best matched the client's capital needs and specific structuring.
  • Helping the client to respond to an extensive due diligence checklist from the financier, coordinating the financier's field visits, and answering follow-up questions.
  • Advising on the term sheet and providing handholding support on the transaction up to and including finance close.
Outcomes
  • ORI’s work enabled the client to source an aligned financier and raise $3.5 million.
  • In addition, the business successfully restructured operations to support new sources of revenue growth better.
  • The client saved the business—built over 15 years—from foreclosure and grew it to new levels based on an ambitious business plan.