Lenders to Sirva Worldwide have taken ownership of the company from private equity sponsors Madison Dearborn and Relo Group, as part of a recapitalization that provided the company with $40 million in new capital.
KKR Credit Advisors, Evolution Credit Partners, BlackRock Financial Management, and Indaba Capital Management comprise the new ownership of the company. The new capital structure for the moving company consists of both term loans and equity, market sources said.
The transaction follows May’s $84 million delayed-draw super-priority term loan raise from some of Sirva’s existing lenders, triggering speculation for an aggressive distressed debt exchange, according to S&P Global Ratings.
According to market sources, 100% of existing lenders participated in the new transaction.
In recent months S&P and Moody’s downgraded Sirva’s existing credit facilities, which included a $60 million revolver, $435 million first-lien term loan, and $115 million second-lien term loan. The loans were set to mature in 2025 and 2026.
The ratings agencies cited downward pressure of the high mortgage rate environment on the relocation business.
According to sources, the new structure provided a “significant deleveraging” for the company, which helped to strengthen its balance sheet.
“Having the support of these experienced investors positions us to capitalize on the tremendous opportunity we see ahead for our business and enables us to continue enhancing growth in our industry-leading mobility businesses,” said Sirva CEO Tom Oberdorf in an Aug. 20 company statement.
Based in Illinois, Sirva provides global moving and relocation services to corporations, individual customers, and government agencies.
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