Banks join forces in $150M funding deal for chemicals giant
Innospec, the global speciality chemical company which has its UK headquarters at Ellesmere Port, has secured a $150 million financing package from a consortium of its core relationship banks.
The funding, provided by Barclays Commercial Bank, Credit Suisse, Lloyds Banking Group, The Royal Bank of Scotland and Yorkshire Bank, will refinance Innospec’s existing debt and provide additional working capital.
Innospec, which employs almost 400 people in the UK, is the largest dedicated Fuel Additive company in the world, and its products are increasingly required to meet environmental standards and improve fuel efficiency. Its Active Chemicals business also provides technology-based solutions for its customers’ processes or products focused in the personal care; household, industrial and institutional and fragrance ingredients markets. In addition its Octane Additives business is the only global manufacturer of leaded petrol additives.
Globally, Innospec employs almost 1,000 people in 23 countries and achieved a turnover of $602 million in 2007.
Kevin Rimmer, director with Yorkshire Bank’s Corporate and Structured Finance team in Manchester, said: “Over the past few years Innospec’s management team have succeeded in switching the focus of the business away from the declining leaded petrol additives market and transforming it into a global speciality chemical company.
“It is now in a strong position to continue its expansion through both organic growth and acquisitions. We are delighted to continue our strong relationship with the company during its next stage of growth.”
Alan Brown, relationship director at Barclays Commercial Bank in Manchester commented: “We are delighted once again to be involved in the financing of Innospec. The latest deal will facilitate the continuing strong pace of development within the Group’s exciting Fuel Specialties and Active Chemical propositions. Environmental regulation is Innospec’s best friend and the Group is well placed to benefit from the global push towards a cleaner atmosphere.”
Chris Sharkey, relationship director at RBS, added: “The funding structure that has been put in place provides Innospec with the platform to continue the growth and success they have achieved over many years. The management team impressed us with their future plans and we look forward to watching their progress.”
For further information contact:
Sam Dabbs, Dabbs PR & Marketing, Tel. 07711 672893
Alison Puente, Yorkshire Bank, Tel. 0113 807 2701
Sally Frost, Barclays PR Manager, Tel: 07920 267124
Mark Lester, Media Manager, The Royal Bank of Scotland, Tel. 07917 598585
Notes to Editors
Yorkshire Bank was founded in 1859 in Halifax, West Yorkshire. Today, the Bank has more than 190 branches, a strong personal customer base and a growing business apability in the North of England and the Midlands.
Yorkshire Bank is a trading name of Clydesdale Bank plc, which is a subsidiary of the National Australia Bank Group of companies. Yorkshire Bank joined the Group in 1990.
In 2006, Yorkshire Bank was voted the UK’s ‘Best Business Bank’ by the Forum of Private Business.
Yorkshire Bank Corporate & Structured Finance services:
Senior Acquisition Debt - Senior Term Debt, Stretched Senior Debt and Property Term Debt
Working Capital - Confidential Invoice Finance, Demand or Committed Overdraft and Specialist Trade and Project Finance
Specialist Asset Finance - where applicable HP and leasing facilities are available to fund the acquisition and refinance of assets as part of a wider transaction
Project Finance - allowing a deal to be structured from a long-term perspective, and tailored to match resulting project cashflows
Mezzanine Finance - available to provide even higher levels of support to proven management teams and business models.
About Barclays Commercial Bank
Barclays Commercial Bank provides relationship banking to 81,000 larger and medium business customers in the UK (£1m to £1bn turnover). Customers are served by a network of relationship and industry sector specialist managers who provide local access to an extensive range of products and services, as well as offering business information and support.
Customers are also offered access to the products and expertise of other businesses in the Group, particularly Barclays Capital and Barclaycard. Barclays Asset and Sales Finance – a specialist business within Barclays Commercial Bank - provides customers with asset financing and leasing solutions.
For further information about Barclays, please visit our website:
www.barclayscommercial.com
The Royal Bank of Scotland Group:
The RBS Group is one of the world's leading financial services companies providing a range of retail and corporate banking, financial markets, consumer finance, insurance, and wealth management services. RBS Group operates in over 50 countries across Europe, the Americas, Asia and the Middle East serving more than 40 million customers and employing more than 170,000 people. The Group’s brands include RBS, NatWest, Ulster Bank, Coutts, Citizens and many other “household name” financial services companies.