ThinCats has delivered a £2.4m funding facility, enabling the shareholders of D W Plastics to fulfil their plans to repay the loan notes taken out to secure the private equity backed MBO of the business in 2016.
The refinance has had an immediate positive impact on profitability, creating tangible savings on relative interest costs and redemption charges. ThinCats acted quickly to put the facility in place and the transaction, which was introduced by Menzies, has proved to be a very flexible solution for both the business and its shareholders.
Headquartered in Chichester, D W Plastics is a manufacturer of high-quality bespoke plastic extrusion profiles, with a specialist focus on construction and marine sectors. Since the company was first established in 1980, the business has grown significantly.
Sue Burley, managing director of D W Plastics Group Ltd, said:
“ThinCats have enabled us to bring our plans to refinance the business to fruition. They completed the transaction successfully and the outcome has suited everyone concerned. ThinCats adopted a commercial viewpoint and were very supportive in making the deal happen. In addition to being approachable, what I particularly liked was the pragmatic and flexible approach they showed towards putting the transaction together for us and meeting our deadlines. That has given us great confidence in working with ThinCats going forward.”
Kevin Paget, corporate finance director at Menzies, commented:
“ThinCats went beyond what an asset-based lender would typically stretch to in terms of the quantum of finance they were prepared to offer. Our client was very pleased with the high degree of pragmatism that they showed and the desire to deliver the deal. The transaction was the right thing to do for the business and the shareholders and we were very pleased with how easy and straightforward ThinCats were to work with. Their relatively light touch due diligence ensured that the transaction was completed quickly and smoothly.”
Andrew Tapsell, business originator at ThinCats, south coast, added:
“There is no substitute for meeting the business and getting to understand their needs in detail. I visited D W Plastics on a couple of occasions to discuss the terms and to explain how ThinCats operate as we were a new lender to them. We acted swiftly and delivered on our promises, providing the funds needed to complete the transaction in a timely fashion. The manufacturers that will succeed in the coming months and years will be those with clear funding strategies in place and we are delighted to support D W Plastics with their growth journey.”