Chess agrees £21m refinance with Barclays
ACQUISITIVE North West telecoms business Chess Telecom has agreed a £21m refinancing with Barclays to fund future deals.
The Alderley Edge-based company, which specialises in phone services for businesses, has carried out 48 acquisitions in the last six years.
The deal sees Chess switch its banking facility from Royal Bank of Scotland.
Accounts for the year to April 30, 2010, show that privately-owned Chess grew turnover by 13% to £29.1m and earnings before interest, tax, depreciation and amortisation (ebitda) by 51% to £5.3m.
Founder and chief executive David Pollock, pictured, said: “2011 has already been a great
year for Chess having been listed as one of the ‘100 Best Companies to Work For’ in the Sunday Times. Now we’re one of the best companies to sell your business to, so if you know a telecoms business owner who’s ready to hit the beach, make sure they give us a call.”
Director Richard Btesh, who handles acquisitions at the firm, said: “The funding received from Barclays demonstrates the success of our strategy of acquiring small to mid-sized telecoms businesses. Barclays demonstrated clear understanding of our sector. Spending £21m in 2011 should keep me busy!”
The deal was arranged by Barclays Corporate in Manchester led by Richard Faulkner, the bank’s relationship director for technology, media and telecoms. He was assisted by debt finance specialists Glenn Clarke and Oliver Reece.
Mr Faulkner said: “Our industry focus and thorough understanding of the telecoms sector has enabled us to structure a finance solution that fits well with Chess’s acquisition strategy.”
Accountants at Ernst & Young and lawyers at DLA Piper advised on the deal.
