Clearwater completes Cloud XL refinancing for Synova Capital


Clearwater Corporate Finance has advised the UK mid-market investor, Synova Capital (“Synova”), on the debt refinancing of portfolio company Cloud XL, with Clydesdale Bank providing new debt facilities.

Cloud XL is one of the UK’s leading providers of cloud based IT and network services to the SME sector. In April 2011 Synova completed the management buyout of Actimax, financing the acquisition with a full equity underwrite and providing certainty of delivery for the vendors.

Synova backed a further two bolt-on acquisitions in 2011 to form Cloud XL. With the group fully integrated, Clearwater was engaged to run a refinance process to repay bridging facilities provided by Synova and negotiate the best possible debt-financing package to support the company’s continuing buy and build strategy. Synova and Cloud XL selected Clydesdale Bank as their banking partner from a number of competitive financing offers.

The Clearwater team was led by partner and head of debt advisory Chris Smith and supported by manager James Dykes.

Chris Smith said: “Synova Capital has grown Cloud XL into one of the leading players in its field. The refinance has put Cloud XL in an even stronger position to continue its ambitious expansion strategy and capitalise on the rapid growth of the cloud based managed IT services sector.”

Commenting on the refinancing, Philip Shapiro, managing partner at Synova, said: “We are delighted to have completed the refinancing of Cloud XL and to have brought on board a high quality banking partner. Despite difficult debt markets Clearwater’s process ensured Cloud XL received several competing financing offers, allowing us to select the right partner to support our plans for the business.”