Why Read?

• Understand TDR Capital’s strategy in and likely exit options from the modular leasing and remote accommodation sector
• Understand TDR’s investments in the sector since 2004 and its IRR across Algeco, William Scotsman and Target to date
• Understand how Algeco has been transformed via disposals of William Scotsman and Target 
• Understand the business divisions and revenue streams of a full-service modular space leasing company
• Understand Algeco’s end-use markets served
• Understand the modular space leasing market and its growth prospects within Europe and APAC by country
• Understand Algeco’s competitive advantages vis-a-vis smaller, regional players
• Understand Algeco’s fleet utilisation, average rental rate and VAPS per unit trends by geography
• Understand the lifecycle of a modular unit and average cash flows generated over its lifetime
• Understand the change in accounting policies, consolidation perimeter and early adoption of IFRS 16; and the related differences between Adj EBITDA generated from 2017 onwards and prior years

What’s New?

• Assessment of TDR’s strategy in modular leasing and remote accommodation, its IRR to date and prospects for an IPO of Algeco (and attendant CDS orphaning) vs continuation of the roll-up strategy 
• Stressing Algeco for shocks to utilisation, average rental rates, VAPS per unit, gross margin and other key variables
• Valuing Algeco’s equity – base and stress DCF valuations and listed and transactional comparable multiples

Questions Answered

• Can Algeco turn around it operations to generate positive FCF after interest payment?
• What is Algeco’s equity value – multiples and DCF approaches?
• What is the impact of recently announced acquisitions on liquidity and FCF?
• Is Algeco’s highly touted VAPS business transferable to the fleets and customers of the acquired entities?
• What is the EBITDA impact of restating financials from 2017 onwards under IFRS 16?
• What has been the financial impact of the disposals of William Scotsman and Target?
• What is a sustainable level of maintenance capex that Algeco can operate with?
• How has the leverage been affected by disposals in the past 2 years and how will it be impacted by recently announced acquisitions?
• What is the impact, if any, of Brexit on the Elliott business in the UK?
• Will APAC operations turn around after a dismal period owing to the Australian mining downturn?
• Does Algeco’s liquidity break under stressed conditions? Would further equity contributions be needed from TDR?
• What recovery rate would be likely on the senior secured notes, ABL facility and senior notes?