M&G Investments has provided a £20 million ten year loan to Hall & Woodhouse, the independent regional brewer and owner of over 200 public houses, as part of its continuing programme to provide long-term financing to established and ambitious mid-sized UK companies.
Only recently, M&G Investments provided £30 million of new debt finance for Caffè Nero, Europe’s largest independent coffee shop group.
The finance for Hall & Woodhouse comes from the M&G UK Companies Financing Fund 2, a £500m fund that provides corporate loans to mid-sized UK companies, typically those with a turnover of £25m to £500m. The fund is backed by the UK Government through the Business Finance Partnership, Prudential plc and a number of UK pension funds.
Lending to established, ambitious UK businesses
James Pearce, Head of Direct Lending, M&G Investments, says: “We are lending to established and ambitious mid-sized UK businesses, such as Hall & Woodhouse, with stable financial track records, successful management teams and strong business plans.
“Mid-sized UK companies have been increasingly looking to diversify their financing and borrow over longer time periods. Funds such as UK Companies Financing 2 open up substantial opportunities for established companies looking at expansive long-term plans, due to the financial foresight and planning benefits long term finance provides them with.
“This long term financing to Hall & Woodhouse, a family owned company founded in 1777 with over 1,400 employees, helps them to align their debt to the long term nature of their business. We expect this to help support their plans to acquire and develop new public houses.”
Martin Scott, Finance Director, Hall & Woodhouse, says: “The M&G Direct Lending team impressed us from the outset. They demonstrated a genuine passion for our business, flexibility in their approach and a willingness to invest heavily up front in getting to know everyone involved in taking us forward.”
About M&G UK Companies Financing
Since the height of the financial crisis in 2008, far fewer long-term, commercial bank loans have been available, leaving creditworthy companies and, indeed, entire sectors in need of alternative sources of finance.
M&G UK Companies Financing 2 (UKCFF2) is a £500m fund that seeks to provide long-term financing to mid-sized UK businesses, defined broadly as companies with turnover between £25m and £500m.
The Fund targets companies who have traditionally only utilised bank lending, but who are now looking to diversity their lending sources. The Fund typically lends in the £10m to £50m range.
In 2009, M&G launched M&G UK Companies Financing Fund, the first fund of its type, set up to directly lend to UK companies. UKCCF2 is the second UK Companies Financing initiative, which has secured investment from HM Treasury via the Business Finance Partnership and M&G’s parent company Prudential plc.