Case Studies

Patria Corporate Finance provided advisory services to the company Leo Express Group in connection with the debt refinancing.
The Transaction

The Transaction

In 2019, the company Leo Express Group was one of the main players in the passenger train transport in the Czech Republic with an ambition to further grow in the neighboring countries such as Poland, Slovakia and Germany.

However, the company's growth was limited by the disproportionately high debt payments, which consumed most of the company's free cash flow. The high level of indebtedness was due to the purchase of 5 Stadler Flirt train units.

The company's shareholders approached Patria with a request to advise them on restructuring of the existing debt. Through a tender between selected financial institutions and subsequent negotiations with these institutions, Patria secured a new financial facility for Leo Express, which significantly reduced the company's annual debt costs.

The Result

Through a competitive selection process between financial institutions, Patria obtained several suitable refinancing offers to replace the existing financing facility which was not aligned with the durability period of Stadler Flirt train units.

The result of Patria's advisory was a 73 % reduction of annual debt costs, from CZK 120 million to the current CZK 33 million, achieved by sale and leaseback of Stadler Flirt units with Raiffeisen - Leasing.





Leo Express

Leo Express Group is a fully private, train and bus operator with presence in 6 countries and with connections to more than 100 destinations. In 2012 Leo Express dispatched its first train in Czechia on the most popular train line between Prague and the Ostrava region.

References

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