Computer firm ties up £17.5m refinancing

A Staffordshire IT business has secured a £17.5m debt package in a deal part advised out of Birmingham.

Stafford-based Stone Computers has received the finance package from PNC Business Credit, with the help of a team of Birmingham-based advisers led by corporate finance advisory firm, Cattaneo.

Stone is a £85m turnover supplier of IT solutions to the public sector, providing a range of hardware and software solutions and services to its customer base in education and, increasingly, local government, NHS, emergency services and central government customers.

The company, which is led by CEO Simon Harbridge and CFO Mark Audin, employs 200 people at its 100,000 sq ft assembly and distribution centre.

Stone appointed Cattaneo, whose team comprised Martyn Pilley and Sam Turton, to advise on the options for refinancing its debt facilities in order to support its exciting growth plan.

In turn, Drew Johnson, regional director at PNC Business Credit in the Midlands, structured an asset-based finance package to refinance the existing term loan and revolving credit facilities.

Andrew Madden and Alison O’Kelly, of Gateley provided legal advice to Stone Computers while William Roles and Rory Milligan, of Mills & Reeve acted as legal advisers to PNC.

Mr Audin said: “As a management team we have developed a clear strategy for the business but were operating in a financial structure that lacked the flexibility we needed to drive the business forward.  We are pleased to have selected PNC who showed great enthusiasm for our business and we look forward to working with them.”

Martyn Pilley, of Cattaneo, added: “With Stone’s senior management team having only recently come together, and with a number of exciting initiatives on their plate, they appointed us to run the whole refinancing process which involved using our knowledge of the debt market to identify appropriate lenders and run a competitive process to structure facilities that support their growth plans.”

Mr Johnson said PNC had been impressed by the job the two entrepreneurs had done in focusing the business on its core strengths to give it a platform to grow in new markets.

“We are delighted to have been able to support them by providing a significant funding package that meets their needs,” he said.