Castelnau Group Secures £65m Revolving Loan Facility from Shawbrook to refinance existing debt and support growth
Shawbrook has provided a £65 million revolving loan facility to support Castelnau Group with debt refinance, cost efficiencies, and future growth investment.
At a glance
Listed closed-ended investment company, Castelnau Group (“Castelnau”) has secured a £65m revolving loan facility from Shawbrook to refinance an existing loan, cover associated costs and make a significant cost savings that supports future investment. The solution is a landmark deal, both in terms of the loan amount and the day-one drawdown which totalled over 90% of the facility.
Castelnau is an investment company focused on delivering strong returns for its shareholders by investing in select UK small to mid-cap private companies. Managed by Phoenix Asset Management Partners, the company adopts a long-term investment approach, aiming to foster value creation by removing short-term pressures and encouraging rational capital allocation within its portfolio companies.
Seeking to refinance existing debt and ease concentration risk within the business, Castelnau was introduced to Shawbrook by Ben Handler from Liberum who knew of the bank’s Fund Finance offering and the team’s expertise in structuring complex transactions.
Shawbrook’s Speciality and Fund Finance team delivered a record £65m 3-year revolving credit facility which had the largest initial draw for a new client to date. The innovative solution, secured against the portfolio’s net asset value, has enabled Castelnau to reduce costs and optimise their capital structure for future opportunities.
We are extremely pleased to have secured this facility from Shawbrook, which doesn’t just reduce our ongoing costs, but helps to normalise our capital structure. Throughout the process, Ismail and the team at Shawbrook distinguished themselves by being pragmatic, commercial, and highly responsive — a partnership approach that sets them apart from traditional banking peers and delivered a great outcome for all parties involved. We look forward to broadening our commercial relationship with Shawbrook going forward.
Ismail Farhat, Director, Speciality and Fund Finance at Shawbrook said:
“Castelnau’s strong business model and track record gave us the confidence to structure a flexible facility for this dynamic investment company. We look forward to partnering with Castelnau’s management team as they strengthen operations and pursue further growth.”
How can we help you build your business?
Our team of experts across the UK are ready and waiting to speak to you about how we can help you realise your business aspirations. Use our enquiry form to get in touch, or contact the team directly through our contact page.