KR8 have supported the raising of £8.8m of new funding for LPA Group plc, a publicly listed UK based engineering business, specialising in electronic and electro-mechanical components and systems.
KR8 acted as debt adviser to LPA, an innovation-led UK engineering specialist in electronic and electro-mechanical components and systems for transport and industrial markets. The firm structured and delivered £8.8 million of new banking facilities with Arbuthnot Commercial Asset Based Lending Limited, refinancing LPA’s previous lender and increasing overall facilities to enhance working capital and headroom.
The new package, comprising receivables and revolving credit facilities secured over property and receivables, runs for a minimum term of three years and is priced broadly in line with LPA’s previous arrangements. It creates material additional liquidity and flexibility to support LPA’s strategic plans, organic growth and operational investment.
KR8 was mandated to deliver a competitively priced, flexible and achievable solution and ran multiple workstreams concurrently to meet an accelerated timetable spanning the Christmas period.
Lisa Handley, Associate Managing Director at KR8, said:
“We focused with management on pricing, flexibility and achievability and were pleased to deliver a solution that met all three. After a strong start to the year, it is fulfilling to be able to support the Group along their journey and it is really pleasing, and to see the positive reaction from the market.”
Robert Horvath, Chairman of LPA, commented:
“The challenge for SME’s looking to grow their businesses when there is declining support from the traditional high street to offer headroom is a challenge. We turned to KR8 because of their knowledge of the secondary market and their relationships with this burgeoning cadre of lenders. They worked diligently and methodically to create our short list, to help us select our preferred choice and to guide us through the challenges of completion. Importantly we have enjoyed working with them.”
Arbuthnot Commercial Asset Based Lending, a UK lender specialising in flexible asset-based facilities for SMEs and mid-market corporates, provided the funding package.
Joe Taviner, Director at Arbuthnot, said:
“KR8 introduced the opportunity and supported us in bringing together a competitive funding package that met the clients’ needs. Despite the ambitious timeframe to completion, with workstreams straddling the Christmas period, KR8 were effective in coordinating all parties to ensure a smooth conclusion to the transaction.”
