...- In February 2022, private equity firm Carlyle acquired Switzerland-based sheet metal forming and assembly simulation software provider AutoForm. The transaction was partly funded by a 472 million senior secured term loan, an undrawn 55 million revolving credit facility (RCF), and a 184 million payment-in-kind (PIK) facility. - With a focus on the simulation software specifically for the auto industry, AutoForm is small with reported revenue of about 110 million in 2021, has high customer concentration, and is exposed to unhedged foreign exchange (FX) risks. Post-transaction, AutoForm has a highly leveraged capital structure, with S&P Global Ratings-adjusted debt to EBITDA estimated at about 10x (7x excluding the PIK facility) in 2022. - However, this is offset by AutoForm's dominant market position, with over 20 years of relationships with global top auto original equipment manufacturers (OEMs), almost 100% subscription-based revenue, very low churn rate of about 2% and zero for OEMs,...
