OVERVIEW

Case study

Swiss Sense has refinanced its current financing facilities at ABN AMRO and at the same time acquired additional growth financing.

Lindenaar & Co acted as advisor for Swiss Sense, renowned for its box-springs, to realise financing facilities for the company’s growth ambitions. Swiss Sense owns stores in the Netherlands, Belgium, Germany and Austria and also production facilities in the Philippines.

Following a competitive process, ABN AMRO was selected as the company’s new house bank. ABN AMRO offered the best solution in which the financing facilities provide sufficient entrepreneurial flexibility and means for the growth ambition of Swiss Sense.

Lindenaar & Co advised Swiss Sense during the entire process, including financial analysis, drafting an information memorandum, structuring the financing facilities, approaching the different financiers and negotiating the terms and conditions. Due to a good cooperation between Swiss Sense, Lindenaar & Co and ABN AMRO, the process was quick and smooth.

What we have done

Financial model

Swiss Sense had a comprehensive financial model, which was used by Lindenaar & co as a base for a scenario analysis. In this scenario is a scenario taken into accounts where sales is disappointing and its effect on profitability and liquidity. This has subsequently been the base for the final financing structure and covenants.

Financing memorandum

To give the banks a clear picture of the activities and plans of Swiss Sense, and to support Swiss Sense’s capital need, a financing memorandum was prepared including information on the company, its positions, its strategy and financials. Based on the financing memorandum a management presentation was prepared that was presented to several banks.

Financing structure

Lindenaar & Co proposed a step-up financing facility structure to the different potential financiers. This facility ensures a relatively high level of flexibility and freedom. A great deal of attention was paid to the value of the pre-sold orders, which was not a certainty for most financiers on which they could finance, but a very important factor for the future cash flow of the company.

Negotiations

Based on the liquidity need and proposed financing structure of Swiss Sense, in combination with the banks’ requirements, Lindenaar & Co negotiated the financing term sheets. Eventually the refinancing and growth funding was realised with ABN AMRO Bank in a short time frame under favourable financing conditions.

Bank relationship

Lindenaar & Co considers it of crucial importance for companies that the relationship with their bank is good. If for some reason this relationship is not optimal, it may be wise to accept the investment in a change of bank and opt for a new house bank. The new relationship with ABN AMRO came at an important moment for Swiss Sense, namely after the challenging summer and the growth in Germany.

Active involvement

The relationship with Swiss Sense goes well beyond the successful realization of the financing. Lindenaar & Co strongly prefers to be actively involved in the long-term and as such, with Swiss Sense, acts as a personal sounding board and sparring partner for Swiss Sense in relation to a wide range of financial strategic matters.

Swiss Sense
Swiss Sense

Swiss Sense is a top 3 retailer in the Dutch and Flemish bed furniture market and one of the fastest growing companies in the German market. Swiss Sense offers premium quality box-springs, bed bases, matrasses and bedlinen. Per end 2018 the company owned almost 100 stores in the Netherlands, Belgium, Germany and Austria. Furthermore, Swiss Sense has its own production facilities.

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