Press release
£150 Million ABL facility to fund MFI turnaround
Burdale Financial Limited (Burdale) and Lloyds TSB Commercial Finance have completed one of the UK's largest syndicated asset based lending (ABL) packages to fund MFI Furniture Group Plc's turnaround strategy.
As joint lead arrangers and underwriters Burdale and Lloyds TSB Commercial Finance have provided a £150 million, 39 month facility to replace MFI's existing revolving syndicated credit facility.
The funding, which is secured on debtors, stock and property, will revolve on a daily rather than monthly basis, enabling MFI to draw down funds more easily.
Alix Partners advised MFI Group in relation to the refinancing.
Matthew Ingle, CEO of MFI, said: "This is good news for MFI. The new facility will allow MFI to focus on its turnaround plans for UK retail and the growth of Howden."
Dennis Levine, Chief Executive of Burdale, said: We are very proud to be involved in providing an innovative financing package to MFI. This transaction illustrates Burdale's commitment to providing bespoke and tailored financing solutions to companies wishing to fully benefit from efficient and effective financing.
We have successfully supported MFI's recovery plan, whilst at the same time meeting the requirements of each of the company's stakeholder groups including pension trustees.
Ted Ettershank, Managing Director of Lloyds TSB Commercial Finance, said:
All the parties involved in the deal worked hard to develop an assured and flexible ABL facility that will enable the business to progress its strategy. This deal again demonstrates the relevance of asset based lending facilities for major UK and International corporations looking for flexible funding arrangements that meet their cashflow needs.
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
