BanqUP draws €4M lifeline from Francisco Partners amid strategic review
What's the deal? BanqUPDealroom has a profile for this one. Try Dealroom → Group has secured an additional €4 million committed term facility from funds affiliated with Francisco PartnersDealroom has a profile for this one. Try Dealroom →, one of its existing senior secured lenders. The Euronext-listed Belgian company added the debt under its 2022 Senior Facilities Agreement.
What does the company do? BanqUP sells cloud-based SaaS tools that streamline business transactions, from e-invoicing and e-payments to tax reporting. Its government product, eFaktura World, helps tax administrations run e-invoicing and B2G and B2B reporting flows.
Why now? The facility supports BanqUP's liquidity while it completes a previously announced strategic review. The board has approved the possibility of further incremental facilities of up to €10 million in aggregate, subject to Francisco Partners' approval.
What's the cost? The lifeline comes at a price. BanqUP agreed to raise the PIK interest rate on Facility A and the CAF facility from 8% to 10.50% per annum, accept a 3% original issue discount on drawn amounts, and add a 5% prepayment premium on repayments.
What could go wrong? The financing is framed as a bridge "pending completion of the strategic review process." If no strategic transaction materialises, the steeper interest terms add to the burden on an already stretched balance sheet.
The signal: A quick re-raise from an existing lender keeps the lights on but signals a company under pressure. The rising interest rate and added fees show lenders extracting tougher terms as BanqUP works toward a deal.
Read more: MarketScreener
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