Daisy dials up £75m banking deal
DAISY Group, the deal-hungry telecoms provider to small and medium-sized businesses, has agreed a new £75m funding deal with three banks.
The three year revolving credit facility sees Lloyds TSB, Yorkshire Bank and HSBC each provide £25m and replaces the company’s existing funding package with Bank of Scotland.
AIM-listed Daisy, which is based in the Lancashire town of Nelson, said the funding would “increase the flexibility and capacity” for the group to continue its acquisition strategy. It added that the deal illustrates strength of the group’s business model.
Anthony Riley, chief financial officer, said: “We have been working with the banks for a number of months to put in place the best facility for Daisy Group. We are delighted that they have agreed to offer us this facility, having completed extensive due diligence on the strength of the business.
“From the perspective of Daisy, we are convinced this is the right deal for us, strengthening and supporting our model and enabling us to continue with our stated consolidation of the fragmented reseller market place.”
Paul Foster, at Lloyds TSB Corporate Markets in Manchester, which led the deal, said: “We’re delighted to lead this latest deal as it continues our association with Daisy, a relationship that dates back to 2007. This is another substantial deal in 2010 for the Manchester team at Lloyds TSB Corporate Markets, with a company that is going from strength to strength.”
Richard Lewis, HSBC corporate banking manager, North West, said: “Daisy has continued to perform strongly despite a challenging economic backdrop and the package will provide further capital for Matt and his team to continue to grow via acquisition in their efforts to consolidate the fragmented SME telecoms market.”
Owen Malton, director with Yorkshire Bank corporate & structured finance added: “Daisy has a tried and tested strategy focused on consolidation within the business to business telecoms market. Its ability to make acquisitions and integrate them rapidly allows it to benefit from cost savings and offer a wide range of products from a single customer service and billing platform.
“This is an opportunity for Yorkshire Bank to fund a successful telecoms business with a strong, credible and experienced management team.”
