Leading-edge financing by National Australia Bank (NAB) has helped deliver the buy-out of TAE (formerly Tasman Aviation Enterprises), making TAE the nation’s largest fully Australian-owned aviation engineerings services company.
NAB helped finance 90 per cent of the deal for TAE management who were able to complete the transaction with an equity contribution – building on NAB’s position in providing tailored funding solutions for Australian businesses.
TAE is an aviation engineering services company in the aerospace and defence sectors and carries out work on turbine engines from Super Hornets to Abrams tanks.
The business was sold by Air New Zealand and has a number of features that are particularly attractive to investors, including long dated contracts with the Department of Defence.
NAB Executive General Manager for Capital Financing, Steve Lambert, said this latest deal further strengthened the bank’s position as a leader in progressive financial solutions through the debt capital markets.
“This deal puts NAB firmly at the forefront of product innovation and Australian business financing,” Mr Lambert said.
“This is further evidence that debt markets can play a pivotal role in funding Australia’s future and in this case, will help our aviation sector continue to grow.”
Head of nabCorporate, David Brett, said the deal was a great result for TAE, with a company-wide effort from NAB to support its customer.
“The transaction demonstrates NAB’s depth of capital solutions, providing our SME customers with access to alternative capital structures often reserved for the institutional segment,” Mr Brett said.
“It is also pleasing to be able to support an Australian business through its next phase of growth.”
TAE Chief Executive Officer, Andrew Sanderson, said TAE management could not have completed the buyout without NAB’s assistance.
“It’s great to know that NAB could make this deal happen to help further grow our company and make it 100 per cent Australian-owned,” Mr Sanderson said.
Following a roadshow to existing clients, NAB was able to provide a senior debt package and subordinated debt. This allowed TAE management to execute the buy-out with an equity cheque.