Banks take majority stake in Heywood Williams following deal
YORKSHIRE building products group Heywood Williams today announced that it has agreed a deal with its lenders which will see it leave the stock market with a syndicate of banks taking an 80% stake in the business.
The Halifax-based group, which supplies products for the housebuilding and home improvement markets in the UK, Europe and USA, has agreed a debt for equity exchange of £21m of existing bank debt and a £6m increase in the group’s committed banking facilities to £45m.
The move will see the banks taking an 80% stake in the delisted group while existing shareholders will see their stake diluted to 10% and board members and other senior management will also hold 10%.
A team from law firm Walker Morris led by banking partner Michael Taylor and corporate partner Richard Naish, including specialists in pensions, tax, employment and competition, advised the UK banking syndicate including Lloyds TSB, Bank of Scotland and Yorkshire Bank owner National Australia Bank.
Pinsent Masons advised Heywood Williams with the team led by corporate partners Helen Ridge and Farook Khan and included Gregg Davison, Rory Cray, John Christian, Simon Horsfield, Anthea Whitton, Andy Phillips and Pippa Whitmore.
Roger Boyes, chairman of Heywood Williams, said: “The board believes that the proposed restructuring and related proposals present the best prospects for securing a significantly improved financial structure for the group and the continuing support of its UK banking syndicate, upon which the Ggroup is dependent for its ability to trade.”
The downturn in the property sector has hit the business hard and it has had to make significant cuts to its workforce.
