CPP secures £130m funding
YORK-based CPP Group has secured £130m of financing to fund its expansion across Europe, Asia and North America.
The senior debt package for CPP, which specialises in providing credit card protection, identity theft protection and mobile phone insurance, was structured in the region and led by Barclays and included Lloyds TSB Corporate Markets, HSBC, Royal Bank of Scotland and Allied Irish Bank.
The five-year deal will provide CPP with working capital facilities to develop its business and enable the return of funds to shareholders. Last year UK revenues were up 16.7% to £136m, while globally the group turned over £225.2m, a rise of 14% on the previous year.
CPP said it is still delivering strong growth despite the credit crunch.
CPP, which employs 1,000 staff in York, has 10.6m customers and works with 280 business partners across 12 countries. It recently announced the opening of its third UK-based contact centre in Chesterfield after York and Tamworth, Staffordshire.
The Chesterfield base is due to open in July and create 300 jobs by the end of the year.
Shaun Parker, finance director at CPP, said: “Despite difficult lending markets, this new debt package is testament to the quality and strength of our business. The CPP Group is performing very well and we have delivered double-digit growth in revenue and profit for the last few years.”
“As we continue to pursue an aggressive growth strategy, both in the UK and abroad, I am delighted that we have the strong support of five major banks. This deal which has been put together locally is a further indication of Yorkshire’s strength as a financial and banking market.”
Eric Woolley, chief executive at CPP, said: “Over the last year we have conducted a thorough strategic review of our business and this debt package was our preferred route to invest in the business and return cash to shareholders. In 2007 we took the first steps to establish CPP in India and preparations are at an advanced stage to launch in Taiwan. In 2008, Mexico and China are also being evaluated as possible future opportunities.”
The facilities were arranged by Ben Andrews, relationship director at Barclays Commercial Bank in Yorkshire, Geoff Durkin, director, Barclays Leveraged Finance and Ralph Edwards, manager, Barclays Leveraged Finance.
Geoff Durkin of Barclays Leveraged Finance, said: “We are delighted to continue supporting the CPP Group with its strong growth strategy and to have also had the opportunity to co-ordinate the deal on behalf of the banks. The successful completion of the deal within a short period of time was testament to the management team’s professional approach throughout the transaction and also the quality of support from the regional professional firms involved in the deal.”
Ben Andrews added: “We continue to maintain a strong relationship with management, providing them with the financing flexibility to meet their key strategic objectives. This deal is a great example of how Barclays remains open for business and is committed to supporting businesses in the region, with their growth plans.”
Andrew Foster, director of Lloyds TSB Corporate Markets acquisition finance, said “CPP is led by a world class team and has longstanding embedded relationships with a global client base to die for.
“LloydsTSB is delighted to continue our support for their next phase of growth. With a product portfolio successfully targeting today’s ‘time poor’ technology dependent society and increasing convergence of the banking and telecom sectors, especially in emerging markets, we believe they are well placed for the future.”
Martin Tighe, director of HSBC Leveraged Finance, said: “‘As CPP’s primary clearing bank, we are delighted to have been involved in the provision of funding for this transaction. The benefits of CPP’s products have perhaps never been more evident and we are confident that the management team will continue to successfully grow the company as they move into new markets and develop the product range.”
Andy Killingback, associate director, Corporate & Structured Finance at RBS said: “RBS is delighted to have supported CPP in this transaction and we look forward to supporting the business further as the company enters its next growth stage.”
Jonathan Dyer, head of Corporate Banking (North of England) at AIB Capital Markets said: “CPP is global leader in the rapidly developing life assistance market with a strong record of growth and innovation both in the UK and overseas. AIB is delighted to support the group as it continues to grow and successfully develop new products and markets.”
