Asta Capital

Presentation of the company

ASTA CAPITAL SL is a holding company incorporated in 2017 with the aim of seeking a majority acquisition of a Spanish SME with high potential.

After 20 months of searching, Asta Capital has signed the acquisition of the leading independent company in Spain in the sector of traceability and automatic data capture (barcodes, RFID, etc.).

The current manager has more than 15 years of professional experience in the sector.

The main activity of the company is:

• The sale of equipment (hardware) dedicated to traceability and data capture such as barcode label printers, readers, mobile computing, PDAs, RFID, etc. of the main manufacturers (Zebra, Honeywell, Datalogic, etc.).

The company works with a very diversified customer base and sells mainly in Spain and internationally.

Project Description

ASTA CAPITAL S.L. through a dedicated company wishes to obtain a loan of 2,200,000 € for 60 months with 3 months of deferred amortization to finance the acquisition of a Spanish SME, the rest of the purchase price will be contributed by own funds. This project will be carried out next month.

It is a Flexible Bridge Loan, a repayable loan with a standard commitment during the first 9 months and the possibility of early repayment at no cost during the rest of the loan term, even in the case of refinancing by other financial institutions.

This project is a medium-term loan with a deferral of principal repayment and, as such, presents a different method of principal repayment than standard projects. For the first 3 months, lenders will only receive interest; for the next 57 months, lenders will receive interest and principal amortization.

This principal repayment profile is tailored to the borrower’s financing needs, while allowing lenders to earn a larger amount of interest.

The amount offered on the platform is limited to 1.000.000, which complies with regulatory limits.

Analyst’s Opinion

The borrower is a holding company whose income is derived from dividends or services invoiced to its subsidiaries. The financial analysis was carried out in the financial statements of the target company.

With a turnover of €8.992.426 in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.

The increase in sales and margins since 2016 is the result of commercial efforts, the acquisition of new customers, the maintenance of existing ones and the continuous reduction of suppliers’ prices.

The reduction in margins in 2017 is associated with an increase in personal expenses, which become fully effective in 2018. The increase in sales in 2018 allowed for better pricing conditions for suppliers and better margins.

The forecast is based on the Company’s business plan and evolution in 2018, in which the company had a turnover of 11.3 million euros and obtained an EBITDA of 1.7 million euros.

The borrower has a solid payment capacity with an FCCR (Fixed Charge Cover Ratio *) of 1.83 and an excellent financial structure, with a net debt/expected ebitda ratio of 1.13 and a net debt/equity ratio of 31%.

Analysis of the project leads to a credit rating of B+ and an annual interest rate of 5.4%.

*The multiple of FCCR at 1,83 means that the company has a safety margin of 83% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points:

• Good historical performance based on a diversified customer base
• Excellent / Good ability to pay with a forecasted FCCR of 1.83x
• The market is expected to grow in the coming years

Surveillance Area:

• A very competitive market