(Bloomberg) — Vialto Partners, a provider of tax and immigration services, has agreed to restructure its debt a little more than two years after the company spun out of PricewaterhouseCoopers and was acquired by private equity firm Clayton Dubilier & Rice.
A group including CD&R and existing lenders, including HPS Investment Partners, agreed to a deal that will inject $225 million of new equity into Vialto and slash around $700 million of its existing debt, according to a statement on Monday. HPS will become a minority equity owner as part of the deal, while CD&R will retain its majority stake, the statement said.
Vialto ran into a cash crunch this year as a result of payments due to PwC, a high debt load and seasonal needs, according to a recent report from S&P Global Ratings. CD&R took the company private in 2022 from PwC where it was a business unit.
“Vialto has faced numerous impediments through its separation from PwC,” S&P wrote in the September report. “In our view, an initial failure to recognize the complexity of the separation process and to anticipate the needs of the stand-alone business have led to mounting operational challenges that the company is unable to overcome under its existing capital structure.”
Vialto has a $200 million revolving credit facility maturing in 2027, a $969 million term loan maturing in 2029 and a $400 million second-lien term loan maturing the year after, according to data compiled by Bloomberg.
The transaction is expected to close in early 2025, according to the statement.
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