LUXFER SECURES £110 Million FINANCING PACKAGE
16 June 2011
LUXFER'S NEW REFINANCING PACKAGE
15 June 2011
Salford - Luxfer today announced that it had secured a £110 million refinancing package from a consortium of three banks and Pricoa.
The consortium of banks includes Yorkshire Bank Corporate & Structured Finance, Lloyds Bank Corporate Markets and Bank of America.
Luxfer, which is headquartered in Salford, has in recent years focused its business development on growth markets such as environmental controls, advanced healthcare technology and the protection of people and property. This new package will provide funding for further growth while replacing Luxfer's existing facilities.
The deal includes a $65 million private placement with Pricoa (Prudential Company of America), which will enable an early redemption of loan notes that were due in early 2012.
Andy Beaden, Luxfer's Group Finance Director, said: “We already have a good established relationship with Bank of America and we were keen to ensure we found the right UK partners to support our growth and strategy. We are delighted to be working with Lloyds Bank Corporate Markets and Yorkshire Bank in that regard.”
Paul Foster, Deputy Head of Lloyds Bank Corporate Markets in Manchester, commented: “We are delighted to have been able to support Luxfer with a flexible funding package enabling them not only to continue with their growth strategy in both existing UK and international markets, but also to open up new developing markets. The business is in rude health and our support lays the foundations for further strong performance in the coming years. This deal is further evidence that there is finance available for strong local businesses with the right strategies for growth.”
The Yorkshire Bank team was led by Owen Malton, Director with Corporate & Structured Finance in Manchester. He said: “We have been talking to the management team for some time and have gained an excellent understanding of the key drivers of this complex international group and have built up a good relationship with the management team. “Luxfer's technology and expertise give it a competitive advantage in its chosen markets. The business has performed consistently over the past few years and has protected itself from the effects of the recession by its international operations and focus on new product development for the growing environmental, healthcare and protection sectors. This funding package will provide it with the resources to support its ongoing growth.”
Luxfer works closely with customers to develop materials and products for demanding applications. It manufactures products in aluminium, magnesium, titanium, carbon composites and chemically-derived compounds of zirconium. Important applications for Luxfer's products include:
· Improving fuel economy by light-weighting aircraft, trucks, buses, trains and cars;
· Controlling emissions from road vehicles, converting noxious gases into harmless ones;
· Removing toxic metals from drinking water and industrial effluent;
· Improving patient mobility and quality of life with lightweight, portable medical equipment; and
· Protecting people and equipment in conflict and emergency situations.
ENDS
For further information contact:
Yorkshire Bank:
Sam Dabbs Dabbs PR & Marketing M: 00 61 433 130085 OR
Pauline Rawsterne M: 07801 639816
Lloyds Bank Corporate Markets:
Billy Partridge, Grayling Communications 0131 560 2943 / 07595 963 333
billy.partridge@grayling.com or lloydsnorth@grayling.com
