Optimising working capital across the balance sheet for Tesco Mobile
securitisation facility, upsized under Liberty Blume project management
of the working capital balance sheet, combined under one customised structure
Challenge
Tesco Mobile needed capital access at the short end of the curve without disturbing its existing financing arrangements, and wanted to optimise free cash flow as part of the same exercise.
The challenge? Bringing both sides of the working capital balance sheet into one coherent structure, while upsizing a securitisation facility already in place, against the asset and funding complexity of a major telecoms operator.
Solution
We designed a single customised structure that combined a flexible payables programme with an upsized securitisation facility, giving Tesco Mobile short-dated capital access and improved free cash flow under one solution.
What we did:
We structured a flexible payables facility to open up capital at the short end of the curve, and project-managed the upsize of the existing securitisation facility.
Drawing on the asset quality, the structure quality, and a long-standing funder relationship, we kept financing costs and complexity low across the whole arrangement — delivering one of the largest specialty finance engagements in the practice for a long-standing telecoms partner.
Results
Low financing costs and reduced complexity, reflecting asset quality, structure quality, and funder relationship:
securitisation facility
vendor finance facility
receivables financing facility
financing costs and complexity reflecting asset quality, structure quality, and funder relationship
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