A new refinancing agreement has secured Claranet a long-term facility with the introduction of Goldman Sachs' Private Capital Team alongside existing finance providers RBS, ABRY Partners and Ares Management. Charles Nasser (pictured), Claranet Group founder and CEO, said: "Our financing extends to 2020 and brings greater flexibility for us as we plan for further growth and development of our products and services.
"RBS, Ares and ABRY, our existing funding partners, have shown long-term commitment to Claranet and our strategy. Additionally, we are thrilled to partner with Goldman Sachs to support our evolution."
Ares and Goldman Sachs have provided a unitranche facility of £82m with RBS providing further support of a committed facility of up to £25m.
The arrangement takes advantage of the lower cost of debt made possible from Claranet's strengthening position, and gives greater flexibility to the company as it continues to grow across Europe.
Mohith Sondhi, Director, Structured Finance Corporates at RBS, said: "We believe the market remains fragmented in continental Europe and hope with the support of committed facilities in what we regard as an innovative structure, that Claranet will carry on their impressive growth and the successful delivery of their strategy."
The latest refinancing follows a successful financial year-end in June 2014 that saw 24 per cent revenue growth across Europe reaching a total of £127.4m (€175.8m).
The strong results demonstrate the success of Claranet's acquisition strategy, expanding its product portfolio and increasing its customer base and overall market position.
This led to an adjusted EBITDA figure of £23.0m (€31.7m) - 97 per cent up on the company's 2013 result of £11.7m (€16.1m). The total contracted future revenue of the Claranet Group as of 30 June 2014 was in excess of £185.7m (€256.3m).
Nasser added: "The refinancing is just the latest step to secure the long-term success of Claranet. We now have greater financial support that strengthens our hand in responding to the growing consolidation of the managed services sector in Europe."