Tripartite

WARNING

Unfortunately, you cannot lend to this project.

Why? Why? This project* does not fall within the regulatory framework of Lendix IFP, defined by the ordinance of 30 May 2014 (ordinance on participatory financing). It is therefore not offered to individual lenders as part of participatory financing.

According to the Ordinance of 30 May 2014, a project consists of a purchase or a set of purchases of goods or services contributing to the completion of a predefined transaction in terms of purpose, amount and timetable

Presentation of the company

Created in 2001, Tripartite is active in the export and maintenance of military equipments sector. The company, managed by Michael Trastour, has 18 employees and is based in Pluguffan. Tripartite is a private company under control of French Governmental DGA.

The company’s main activities are:

• Exports of all kind of navy or aviation spares : equipments, electronics, chemical products…
• Maintenance into operational condition of warships, surface ships, submarines, military aircrafts ans helicopters.

The company works with 11 countries such as Argentina, Pakistan, French navy, Brazil.

The team includes naval technicians and engineers of the Franch Navy ans DCNS.

Tripartite is qualified ISO 9001 and listed in the NATO codification.

Project Description

The company wishes to borrow 260 000 € over 12 months with 3 months of deferred repayment to finance the purchase of equipments for new contracts. The total requirement is 520 000€ spread over 2 tranches of 260 000€. Today’s funding is for the first tranche. The second tranche funding is subject to the repayment of the first one. It will be presented later in a dedicated project.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 6 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.

This project is a medium-term loan with a capital amortisation deferment and as such presents a different method of capital repayment than standard projects. The first 3 months, the lenders will only receive interest; the following 09 months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.

Analyst’s Opinion

With a turnover of 10 870 000 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

The variation of the revenue and the profitability is linked to the increase of sales in France which have less margin. The forecast has been done on 2017.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,32 and an excellent financial structure, with a forecast net debt / ebitda ratio of 0,5 and a net debt / shareholder equity of 37%.

The analysis of the project leads to a credit rating of B+ and a 4,2% annual interest rate.

Strong points:

• Good historical performance based on diversified client base.
• Correct repayment ability with a forecasted FCCR of 1,32.
• Good competitive positionning company with very experienced team coming from french army.

Point of caution:

• Governments and politics risks

*The multiple of FCCR at 1,32 means that the company has a safety margin of 32% 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 (Scores & Decisions, Corporate Banking File). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.