Following a voluntary administration process overseen by Deloitte and advisers from Moelis & Company, SME lender Axsesstoday has been sold without risk. The company was sold to an affiliate of Cerberus Capital Management for nearly $260 million.
Based in Melbourne, Axsesstoday is Australia’s SME lender. Recently, the company has become a victim of its own success. While it has grown significantly over the past three years, it has put pressure on the company’s capital structure. A growing number of bad loans eventually forced Axsesstoday into voluntary administration during the year, with the main lenders saying they were unable to continue to support the business by continuously waiving credit defaults.
Axsesstoday appointed by Deloitte restructuring services partners Vaughan Strawbridge, Sal Algeri and Glen Kanevsky to oversee the process. Axsesstoday was sold to an affiliate of Cerberus Capital Management following an intensive sales campaign with the help of Moelis & Company, which advised the trustees.
Lee Millstein, president of Cerberus Global Investments, said of the acquisition: “We are delighted to close the transaction and begin working alongside the talented team at Axsesstoday. We look forward to supporting the company as it expands its capabilities and continues to provide tailored financial solutions to meet the needs of Australian businesses.”
The news, which was completed in late August by way of a company arrangement agreement, was valued at $259.7 million, allowing all secured creditors to be repaid in full. At the same time, more than $18 million was provided for payments to unsecured creditors, with a split expected between 33.9 cents and 34.9 cents on the dollar.
Under the new ownership of Promontoria Holding 304, the company will continue as Australia’s leading provider of facility finance solutions and all current employees will be offered permanent employment. Under the terms of the arrangement, the Axsesstoday (AXL) listed company will be sold separately, as it is now listed as a hidden company, and will remain under the control of administrators until the sale is completed.
Joint trustee Vaughan Strawbridge said: “This is an outstanding result which could not have been achieved without the understanding and continued support of staff, sponsors, the broker network and customers. I am particularly pleased with the employees whose jobs have been retained.”