Lloyds TSB Commercial Finance has completed another private equity backed cross border transaction with the GBP75m refinancing of Chesapeake.
With a turnover of GBP500m, Chesapeake is a supplier of consumer packaging.
The company operates in a wide variety of market sectors including pharmaceuticals, agrochemicals, confectionery and spirits.
Since May 2009, Chesapeake has been owned by two American private equity houses, Irving Place Capital and Oaktree Capital Management. Their purchase of the business marked the transition of Chesapeake from being a publicly-traded company listed in the US to a private company headquartered in the UK.
Chesapeake now operates as a private, independent company led by packaging industry veteran Jerry Kerins, who was named chairman and chief executive officer at the time of the purchase.
At the time of the acquisition, the financial turmoil in the banking markets resulted in IPC and Oaktree opting to provide loan facilities to the company as the option to use a conventional third party bank lender was not practical. As market conditions have improved, IPC and Oaktree sought to refinance these loan facilities.
Rick Smith, Chesapeake’s chief financial officer, says: “It is pleasing to get the new facility in place which recognises the financial strength of our business. We have a robust balance sheet supported by strong cash flows which will allow us to grow and develop our business. Like Chesapeake, Lloyds TSB’s commercial finance team is based throughout Europe which helped our local management teams through the process.”
Christopher Hart, director, international sales, and Piers Harmer, director, business development, led the Lloyds TSB Commercial Finance team in the negotiation and structuring of the facility across Europe.
Hart says: “This has been a phenomenal transaction. The team at Chesapeake were fantastic and we worked very well together. We are delighted to be supporting Chesapeake with such a significant pan-European facility, which has allowed us to demonstrate once again our cross-border funding credentials.”
