The Debt Connection – July 2013


Welcome to the very first Debt Advisory newsletter from Clearwater Corporate Finance. This newsletter will be a regular brief covering a topical subject from the debt markets and recent deals.

Our debt advisory team is made up of experienced corporate bankers with a wealth of knowledge of the debt and capital markets. Specifically, Clearwater can help with:

  • Refinancing Existing debt facilities, new debt markets, syndicated and club facilities, diversification or expansion of funder base, access to sophisticated and specialised debt packages that international finance markets provide
  • Acquisitions, disposals and mergers Change of ownership transactions or “value release”
  • Growth and development finance Development finance for real estate, raising new debt capital for investment
  • Restructuring or renegotiating debt Covenant renegotiations, trading fluctuations, facility amendments and extensions
  • On-going advice Sector insight, banking market updates, exit strategy planning

Deals News

Rimor Limited

Clearwater Corporate Finance’s Debt Advisory team has raised bank funding to support the multi-million pound Management Buy-Out of Rimor, a worldwide supplier into the global sub-sea oil and gas industry. Management were backed by private equity house LDC.

The company, based in Denmead, Hampshire, employs 123 staff and is a market leader in the supply of complex, high-precision components, technical fabrications and complete assemblies, predominately to the capital equipment sub-sea, deep water oil and gas market. Clearwater’s debt advisory team was led by Partner, Mark Taylor and Assistant Director, Chiara Pettinicchio.

Mark Taylor said: “Rimor’s unique capabilities, highly-skilled workforce and strong track record of capital investment have resulted in the company becoming a pre-eminent supplier in its field.”

The bank funding was provided by Yorkshire Bank’s Birmingham office.

“Manufacturers of major equipment used in the oil and gas industry are increasingly pursuing a strategy of outsourcing non-core production. Rimor is already benefitting from this strategy and is enjoying an increase in orders from existing customers driven by growth in global spend.”

“With growing worldwide demand for energy and the need to extract oil and gas from deeper water and more extreme environments, prospects for the sector as a whole look very positive. Under the stewardship of a first-rate management team, this puts the business in an excellent position to deliver significant growth in the future.”

Excelsior Technologies Limited

In May, packaging manufacturer Excelsior sealed a £13m refinancing deal with the assistance of Clearwater’s Debt Advisory team, led by Partner, Mark Taylor and Director, John Clarke.

Excelsior is one of the largest independent flexible packaging manufacturers in the UK, whose customers include Birds Eye, Haribo, Premier Foods and SC Johnson. Last year the £44m turnover company was acquired by private equity firm Growth Capital Partners LLP. Mark Taylor said, “The business had a clear strategic plan devised when Growth Capital Partners invested in the business during 2012. Management are midway through implementing this and a bespoke funding structure was required.”

Andy Pickford, Corporate Development Director at Royal Bank of Scotland Invoice Finance added, “We were introduced to Excelsior by Mark Taylor at a time when they were seeking a new funding partner that could provide a complete solution to support their UK operations, as well as having an eye on their US capabilities in North Carolina.”

The £13m facility consists of working capital and term loan funding secured against the company’s receivables and fixed assets, in an ABL structure. ABL is becoming increasingly common in the mid-market and is often a good way for businesses to secure flexible funding to meets their requirements, at a competitive price point. We expect to see further adoption of this type of structure in the future.

Andy Pickford also said, “Excelsior were already using invoice discounting and loan facilities but we were able to demonstrate the benefits of using ABL to provide a complete debt solution. By working with our colleagues in RBS Corporate & Institutional Banking we have delivered a complete funding solution under one roof.”

Mark Taylor further commented, “We are confident that Excelsior is a fantastic fit for RBS and the new debt structure will assist with international expansion.”

If you would like to discuss any of the subjects covered in more detail, then please get in touch with us using the links below.

Chris Smith – Partner

Mark Taylor – Partner

David Burton – Manager