finnCap Debt Advisory secures £100m facility for iomart

New £100m four bank club replaces legacy £80m bilateral facility

finnCap Debt Advisory is delighted to support iomart Group plc (AIM:IOM) on its debt refinancing with a new £100m revolving credit facility (RCF). The RCF is provided by a new four bank group consisting of HSBC UK, Royal Bank of Scotland, Bank of Ireland and Clydesdale Bank and replaces the Group’s existing £80m bilateral facility provided by Lloyds Banking Group.

iomart Group plc is a cloud computing and IT managed services business providing hybrid cloud infrastructure, network connectivity, security, and digital workplace capability. Its products enable customers to connect, secure and scale anywhere, anytime, with a 400-strong team that can design and deploy the right cloud solution for its customers.

The RCF has an initial maturity date of 30 June 2025, with a 12-month extension option, and benefits from a £50m accordion facility in addition to the £100m committed facility.  The RCF and the accordion facility (if exercised) provide the Group with additional liquidity to be used for working capital purposes and to fund investments, in accordance with the Group's 5-year strategic plan.

Scott Cunningham, CFO, iomart Group plc, commented: “Given the financial strength of iomart, lender appetite levels in participating in the debt facility were high.  However, this was the first time that a bank club was established and our incumbent lender was potentially being replaced. Therefore, we needed support in ensuring we ran a diligent and professional process and this is exactly what the finnCap Debt Advisory team delivered.   I was delighted with the outcome in terms of the new lenders and banking arrangements, which underpins our growth plans for the business.” 

Alistair Hay, Head of Debt Advisory, finnCap Group, commented: “We are delighted to have successfully completed the refinancing of iomart.  Whilst larger than the previous facility, the new RCF also provides the Group with materially enhanced operational flexibility and – given the introduction of four new lenders – significant firepower to provide further lending commitments.  The Group has a clear strategic vision and the enlarged debt facility is a key contributor to its future growth.” 

The finnCap Debt Advisory Team has supported Cortland, a leading global multifamily real estate investment, development, and management firm, in its acquisition of Qdime Group, a leading provider of property management solutions in the UK, through the provision of debt financing provided by UK lender Apera Asset Management. 

“We are delighted with the assistance and guidance provided by the finnCap Debt Advisory team to support this hugely important acquisition. The key for us was to find a strategic lending partner in the UK; therefore, the team’s intimate knowledge of the UK debt market and network of lending partners proved essential in achieving this successful outcome.”

Paul Wrights, President of Cortland Europe

finnCap DebtAdvisory advises Improve International (“Improve”), a global provider of continuing education to the veterinary sector and portfolio company of RJD Partners (“RJD”), on the recapitalisation of the business through a debt facility provided by Santander.

Richard Caston, Partner, RJD: “We backed the MBO of Improve during a global pandemic and opted to equity underwrite the full value of the deal at completion. Having performed well since the MBO, the business was in a strong position to be recapitalised and allow us to return a significant portion of the invested capital to our investors. We mandated finnCap and were very pleased with the range of deliverable options that they presented.”

Chris Convey, CFO, Improve: “The new debt facility from Santander is one of a range of options considered; however, the ultimate financing structure ticked a number of boxes. The facility has enabled us to reduce the business’ cost of capital as well as setting up the perfect platform to execute our growth strategy. The support of the finnCap team was fantastic and enabled me to keep most of my focus on the business whilst having full ownership at critical milestones during the process.”

Alistair Hay, Partner & Head of finnCap Debt Advisory: “It was a pleasure to work with Richard and Chris on the recapitalisation of Improve. Amidst strong interest from lenders, Santander’s offering proved the perfect fit in providing significant liquidity to shareholders alongside flexibility to deliver Improve’s growth plan.”

finnCap Debt Advisory supports Rockpool Investments / Cambridge Maintenance Services on their acquisition of Acorn Engineering Group with funding provided by Clydesdale Bank. The transaction follows the team advising Rockpool on securing senior debt facilities from Clydesdale Bank funds to support the MBO of Cambridge Maintenance Services a leading UK provider of mechanical and electrical engineering services.

finnCap Debt Advisory supports K3 Capital Group plc on securing its maiden debt facility.
 
K3 Capital Group plc (“K3” or the “Group”), a multi-disciplinary professional services firm providing advisory services to SMEs, is pleased to report the Group has secured total available debt facilities of £15m from HSBC through a new £10m committed revolving credit facility with an approved, but uncommitted, accordion facility of up to £5m.

Andy Melbourne, CFO, K3: “We are delighted with the support of the finnCap Debt Advisory team in securing our maiden debt facility with a new banking partner. To date, the Group has been supported by its shareholders and its own cash generation in delivering the Board’s vision. The new debt facility represents an important evolution of our capital structure, creating more flexible funding options as we consider further strategic acquisitions, in line with our ongoing growth strategy.”

Alistair Hay, Partner, finnCap: “This transaction represents an important milestone for K3 as they diversify their M&A funding options via the new debt facility. We introduced a local HSBC team to K3 early in the process and are delighted the Bank was able to deliver the desired quantum and structure on attractive terms.”

finnCap Debt Advisory supports Ideagen Plc on £75m debt refinancing

Ideagen plc (“Ideagen” or the “Group”), a leader in compliance software for regulated industries, is pleased to announce it has extended its total available debt facilities to £100m through a new committed credit facility of £75m with an approved but uncommitted accordion facility of up to £25m (replacing existing facilities of £50m).

Emma Hayes, CFO, Ideagen: “We want to give a huge thank you to the finnCap Debt Advisory team for their support and advice with the refinancing. Whilst we were confident there would be bank appetite to support the Group’s M&A aspirations, the dynamic of bouncing ideas off Alistair and Graham proved incredibly useful. We have now secured enlarged debt facilities with a new partner on board, strong commercial terms and with the desired flexibility to support the next phase of growth.”

Alistair Hay, Partner & Head of finnCap Debt Advisory: “We are pleased to have supported Ideagen on securing a £75m club facility. The Group has benefitted from a supportive partner in NatWest over a number of years but, like many successful businesses, their growth ambitions required bringing another bank onboard. Alongside NatWest, Santander is the ideal partner to support both Ideagen’s current and future financing requirements.”

finnCap Debt Advisory supports Chiltern Capital on cross-border M&A.

Chiltern Capital has acquired Finnish flexible packaging company, Amerplast, and will combine it with Hanmere Polythene and Plasmech Packaging to form an enlarged, pan-European group.

Amerplast CEO, Mark Rooney, becomes the group CEO, working with Chairman, David Lennon and CFO, Jim Farrell, as well as the wider senior management team, to lead the business in delivering its ambitious growth plans.

The transaction was financed by a £52m multicurrency unitranche facility provided by Arcmont Asset Management and advised by finnCap Cavendish.

David Butler, Investment Manager, Chiltern: “This acquisition demonstrates Chiltern’s desire to support its portfolio companies in delivering both organic and inorganic growth. finnCap brought a number of financing options to the table to fund the acquisition and we are delighted with Arcmont as our partner going forward.”

Alistair Hay, Partner, finnCap Cavendish: “We are delighted to have had the opportunity to advise Chiltern on this transformational, cross-border acquisition. Arcmont stood out as the ideal funding partner for the Group having devoted significant efforts to tailoring a uniquely-structured solution to finance the transaction.”

The finnCap Debt Advisory Team has advised Rockpool Investments on securing senior debt facilities from Clydesdale Bank. The funds will support the MBO of Cambridge Maintenance Services a leading UK provider of mechanical and electrical engineering services.

Tom Coey, who led the deal for Rockpool: “This deal represents a fantastic opportunity for our investors to support an established and well managed business with an excellent reputation in the facilities management sector. We are delighted with the debt financing package arranged by finnCap, which was a critical element to the completion of the transaction. We were extremely pleased with how the process was managed by the finnCap Debt Advisory Team, which provided us with optionality to select the most appropriate banking partner for CMS."

Alistair Hay, Partner, Cavendish Corporate Finance LLP: "We are grateful for the opportunity to once again work with the ever impressive Rockpool team and know that they have found the right financing partner in Clydesdale for CMS. Likewise CMS has found an ideal and supportive long-term investor in Rockpool and we look forward to watching the business continue to grow in its sector and become the maintenance service provider of choice."

finnCap Debt Advisory supports Iofina with signing of new debt refinancing announced

finnCap Debt Advisory continues to support clients through 2020 with announcement of maiden domestic US debt financing

Iofina Plc (“Iofina”, the “Company” or the “Group”), specialists in the exploration and production of iodine and manufacturers of specialty chemical products, has announced that it has signed binding documentation to refinance its entire debt, with support from finnCap Debt Advisory, by entering into a new loan agreement (the “Facility”) with First Financial Bank, (NASDAQ: FFBC), a Cincinnati-headquartered, US regional bank (“First Financial”). The Facility provides Iofina with new debt facilities of up to US$18m, with the proceeds used to pay off existing debt and to provide working capital for the Group going forward.

The Facility comprises two parts:

– A 7-year term loan for US$10m that is fully amortizing over the term.

– A 2-year asset based revolving line of credit for up to US$8m.

The Facility will be fully secured against the assets of the Group and contains customary financial covenants, as well as affirmative and negative covenants customary for transactions of this type.

Iofina were advised and supported by finnCap Debt Advisory on this transaction.

Commenting, President and CEO of Iofina Dr. Tom Becker, stated: “The conclusion of the debt refinancing, with the support of finnCap Debt Advisory, is a significant and positive step for Iofina and is the culmination of many months of hard work. The favourable terms of this refinance demonstrate how far Iofina has progressed in recent years, given that the Company has significantly reduced debt, lowered debt interest rates, and secured a strong lending bank partner. With the Company’s balance sheet significantly strengthened by the 7-year term loan in place coupled with the revolving line of credit for future growth, Iofina is focused on operational developments and expanding its production and chemicals product portfolio.”

Commenting, Partner of finnCap Debt Advisory Graham Cooke, stated: “After many months of hard work by all parties, it is great to see the conclusion of this debt refinancing. The transaction was an extremely important project for Iofina and we are delighted to have been able to support them and help them secure this new facility. I know in First Financial they have found the ideal financing and relationship partner for the future.

Podcast: The Lender Landscape

Our latest podcast hears from Debt Advisory Partner at finnCap Group, Graham Cooke, who shares his views on the debt landscape of 2020 and how lenders are poised for the future.

Listen to the podcast here

finnCap's Debt Advisory Team is pleased to announce that it has advised Morses Club PLC (“Morses Club” or “the Group”) on securing an extension of its revolving credit facility (the “RCF”) with its existing funding syndicate until the end of November 2021.

Morses Club, an established provider of non-standard financial services, has agreed a reduction in the level of the facility from £50 million to £40 million to better reflect the requirements of the business over the next 18 months as it anticipates some deleveraging of the business driven by decreased sales volumes due to COVID-19. In the last year this additional £10m headroom has not been used. Facility levels that better reflect the near term needs of the business are expected to reduce funding costs, with the Group’s higher interest rate mezzanine debt facility now fully repaid and lower non-utilisation costs on the RCF facility expected.

Paul Smith, Chief Executive Officer of Morses Club, commented:

“I am delighted that we have secured a new loan facility and that our three existing funders continue to support the business during this challenging period, demonstrating their confidence in Morses Club and our growth and digital diversification strategy. The new loan facility provides us with sufficient funding to meet our requirements including expanding our product offering as we address the evolving needs of our customers.”

Alistair Hay, Partner and Head of Debt Advisory at finnCap, commented:

“The successful refinancing of Morses Club’s existing debt facilities is a testament to the strength of the underlying business model against a backdrop of increasing market uncertainty. The new facility is right-sized for the needs of the business, simplifies the debt structure, lowers the Group’s cost of capital and provides a robust platform for the Group going forward. In the current climate, it is also encouraging that existing lenders are engaging with and supporting their clients with their financing needs.”

Cavendish and finnCap Group’s Debt Advisory team has advised Kape Technologies plc (“Kape”) on securing new debt financing facilities of up to $70m.

Kape provides innovative digital security and privacy software products to a largely consumer client base. Following its recent acquisition of Private Internet Access (PIA), Kape has agreed new facilities with a club of banks comprising of Bank of Ireland, Barclays Bank and Citi Commercial Bank. This new financing structure provides a platform and liquidity for further growth over the coming years.

Moran Laufer, Chief Financial Officer of Kape, commented:

“We are pleased to have secured this debt facility with Bank of Ireland, Barclays and Citi supported by finnCap. This facility not only supports our recent acquisition but further strengthens our balance sheet providing additional growth capital. This is a strong signal of support for Kape’s long-term success driven by its SaaS business model. We look forward to working alongside the Banks as we seek to create further value for all our key stakeholders as we expand our market reach.”

Graham Cooke, finnCap Group, Debt Advisory, said:

“The acquisition of PIA is an extremely important and transformational transaction for Kape. We are delighted to have helped them complete this debt financing in the current environment and look forward to supporting them in the future in their successful growth journey.”

Cavendish, part of finnCap Group, has advised HFMC Wealth on securing debt facilities to facilitate the acquisition of Aspinalls Group.

David Aspinall, founder and Executive Chairman of Aspinalls Group, said: “To ensure continuity for our clients, it was vital that any such partner shared our values and those of our clients, whilst mirroring our approach to wealth management. I wanted to have complete confidence that our clients would continue to receive high-quality ongoing advice and service for as long as they need it.

“In HFMC Wealth we have found a partner that meets all these requirements and who will protect the legacy of the business we are proud to have built over the last 38 years.”

The purchase of Aspinalls adds assets under management (“AUM”) of over £130m and brings total AUM for the Group in excess of £1.4bn. The acquisition represents a return to M&A for HFMC following their previous acquisition of Generic Financial Management (in October 2018) as management continues to progress their ambitious growth strategy with further acquisitions expected to add new products and future expansion.

Senior debt facilities were provided by ThinCats to refinance an existing Natwest facility and also fund the Aspinalls consideration.

Dave Sherrington, Regional Head of Sales at ThinCats, said:

“We are delighted to have worked closely with finnCap Group to create a funding solution to support HFMC with its growth plans. Wealth management is a long-term growth sector and HFMC is well-placed to benefit. We look forward to supporting them in the years ahead.”

Alistair Hay, Partner and Head of Debt Advisory at finnCap Group, commented:

“We are grateful for the opportunity to work with Jeremy and his team on financing this important acquisition. In ThinCats, the Group has a supportive, long-term financing partner who invested the time in understanding the business and tailored a debt structure accordingly. We look forward to working together with both parties in the future.”