CASE STUDY

Receivables Finance

Global facilities service provider raises €350 million

ISS - Copenhagen, Denmark
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Recognised as the World’s Best Outsourcing Company*, ISS has operations in over 75 countries across five continents, employs more than 510,000 people and has annual sales of $10.4 billion. When ISS approached Demica, it was owned by private equity funds advised by EQT Partners and Goldman Sachs Capital Partners and was keen to lower its costs and accelerate growth.

A core part of this strategy was to introduce receivables finance (allowed under the terms of its senior debt facilities) into its financing structure to reduce the Weighted Average Cost of Debt. The planned €350 million trade receivables securitisation programme required selling receivables from subsidiaries in 10 major European countries and posed a number of challenges for ISS and its advisers. These ranged from structuring the transaction so it sat outside the complex existing security package through to managing the syndicate of banks and then implementing the sophisticated reporting required for a highly geared group with multiple ERP systems that were the consequence of a series of acquisitions.

“DEMICA helped us to capitalise on our trade debt assets to gain access to a relatively low cost, low volatile source of finance, with greatly advantageous rewards for ISS.”
Barbara Plucnar Jensen
— Senior Vice President, Head of Group Treasury, ISS

After the structuring was complete, Demica's team guided ISS staff through the key steps while we automated the processes that underpinned ISS’s role in the transaction. Our platform made the administration of the very complex programme as effortless as possible, while ensuring that the process was strictly compliant. Our detailed review of the order-to-cash processes enabled us to identify further insights that ISS used to streamline data flows and improve financial transparency across the group.

The net result of the programme was that ISS gained access to the low cost finance it sought – funds that played a key part in the future growth of the group and culminated in its successful IPO on the Copenhagen Stock Exchange and the exit sought by its private equity owners.

* The International Association of Outsourcing Professionals 2014

€350m
Facility size
5 years
Length of relationship
10
Number of subsidiaries