Greyhound Australia
Greyhound Australia is the nations leading coach company and the only long-haul operator with a truly national network. 333 took control of the business in 2006, following a period of declining revenue and structural change in the travel industry, implementing a range of financial strategies that transformed the outlook for this iconic brand.
Overview
Experiencing life-threatening structural change to its core passenger markets with the introduction of discount airlines, exacerbated by the weight of a broken leveraged buyout capital structure, 333 Capital took Board and management control of the business in 2006.
Objective
Prior to taking control of the business, 333 Capital was engaged to redesign and implement a new capital structure for the Group, which included:
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- A reduction in the Group�s senior secured interest bearing debt to a sustainable and serviceable level. \n
- The transferral of minority shareholders� subordinated debt to interest-bearing junior debt. \n
- The conversion of all Preference Shares to Ordinary Shares, rendering the separate equity class redundant. \n
333 Capital also analysed Greyhound�s existing operations and exited a number of unprofitable routes, actually reducing the number of kilometres travelled each year whilst ensuring that both margins and passenger yield improved.
Outcomes
Through a combination of strategic repositioning, operational and capital restructuring, management effectiveness and a great deal of hard work, the 108 year old business is thriving once again. Greyhound Australia posted a $2 million EBITDA loss in 2005 � it will post positive EBITDA this year of more than $15 million. 333 Capital continues to govern and manage Greyhound Australia today.