Recognise Bank has completed a £1,697,500 bridging loan to support the acquisition of two industrial units in West Yorkshire.
The borrower was acquiring premises from which its manufacturing business operates.
The business has been established for more than 35 years and specialises in the development and manufacture of coatings, adhesives, elastomers and moulded rubber products. It employs over 100 staff and exports its products globally.
The finance facility, introduced by Mark Jerman at Watts Commercial Finance, was structured over an 18-month term at 67% LTV on a serviced basis.
The funds are being used to acquire two of the five operational units that make up the company’s wider site.
Bringing the assets into ownership supports the borrower’s longer-term strategy to strengthen its balance sheet and secure operational control of its manufacturing base.
Complex banking requirements
The transaction required a considered approach due to the borrower’s complex banking requirements and the need to align short-term funding with a longer-term solution.
The borrower needed time to identify a banking partner capable of supporting its international operations and multi-facility structure.
Recognise Bank worked closely with the broker to structure a facility that provided both certainty of execution and sufficient flexibility to deliver the acquisition while allowing time to secure longer term finance.
A pragmatic view was taken on the strength of the trading business and asset base, with the deal completed within the required timeframe.
The deal was led by lending manager Paul Bagan, supported by the wider lending and operations team.
Recognise Bank provides short-term property lending across commercial and residential assets, taking what it calls a straightforward, relationship-led approach to structuring and delivery.
Paul Bagan (pictured), lending manager at Recognise Bank, says: “This was a well-established manufacturing business with a clear rationale for acquiring its operating premises.
“The requirement was to structure a facility that supported the acquisition while allowing time to put the right long-term banking in place.
“We worked closely with the broker to deliver a solution that balanced speed, clarity and flexibility, giving the borrower the certainty needed to complete and move forward with its plans.”
Mark Jerman, Watts Commercial Finance, adds: “This was a borrower with a well-established business with a clear strategy, but the need to align short-term funding with more complex future banking requirements meant the deal needed careful structuring.
“Recognise Bank understood the brief from the outset and worked collaboratively throughout, delivering a facility that gives the client the time and certainty needed to progress.”
