Background

Jablite Holdings manufactures expanded polystyrene (EPS) products through two main trading companies, Jablite and Styropack. Jablite produces moulded EPS products for insulation and civil engineering in the construction sector, and Styropack’s products are used for protection and insulation in a range of consumer and retail goods.

The management of the firm completed a management buyout, and a subsequent change of business strategy had created significant growth opportunities for the group, along with the need for more working capital. The group’s bank was unwilling to significantly increase its lending, which would have slowed down the growth of the business.

Action

Jablite Holdings engaged our Corporate Finance team to provide advice on the current market conditions and the lending appetite of traditional and alternative lenders. The team ran a competitive raising capital process and presented the business to a range of lenders, negotiating significantly improved terms and securing several funding offers.

Outcome

Our team provided clear and objective recommendations to Jablite’s directors on the best funding solution, as well as modelling the associated working capital requirements and the necessary covenant tests. As a result the company was able to secure a total funding package of approximately £13 million, which was £5 million above the previous lender’s limit. The funding provided a solid platform for the company’s further growth.