Lloyds Banking Group has arranged an innovative funding facility to support the ongoing export activities and overseas expansion of President Engineering Group Limited (PEGL), the Sheffield-based valve manufacturer, which is backed by YFM Equity Partners.
Lloyds TSB Commercial Finance has supplied an export-focused confidential invoice discounting line, while Lloyds Bank Wholesale Banking & Markets has refinanced the business’ existing capital structure and provided a supplier import loan, alongside additional ancillary banking relationships.
PEGL consists of two core Group business units: Conflow and Bestobell Valves. The companies were acquired from former parent Flow Group as part of a management buyout supported by YFM in October 2010. In addition to its main site in Sheffield, PEGL has distribution and manufacturing sites in Pittsburgh, USA and Ahmedabad, India.
The package provided by Lloyds Banking Group includes a market leading export confidential invoice discounting facility from Lloyds TSB Commercial Finance. The landmark financing line will safeguard PEGL’s cashflow against international customers’ lengthier payment terms.
Lloyds Bank Wholesale Banking & Markets has provided a senior term loan to refinance the business’ existing capital structure, alongside ancillary banking facilities. The lender has also arranged a direct supplier import loan facility, which allows the business to advance the cost of materials to suppliers and repay the loan when finished goods are shipped to customers.