Client Brief

A large German based manufacturer of industrial compounds with extensive international operations was carved out of a major industrial conglomerate. The sponsoring firms asked PMC to provide an interim resource to manage the new business treasury affairs and to undertake a number of ring-fenced projects.

PMC Solution

• Review the group’s FX exposures in detail and recommended an appropriate approach to manage these;
• Organise and executed a redenomination of some of the group’s debt financing;
• Implemented a comprehensive cash forecasting process;
• Rationalize the group’s banking facilities;
• Developed several models to manage the leveraged debt package, including its covenants, debt baskets and payments;
• Design the entity’s target treasury structure and supported the recruitment of the appropriate resource.

Results & Recommendations

We enabled the new entity to establish a new function that was capable of appropriately managing its various financing and treasury risks within a highly leveraged environment.