Polypie in new £160m finance deal for growth

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Polypipe secured a £160m funding package from a syndicate of banks to fund the manufacturing group’s flotation earlier this month.

Lloyds Bank Commercial Banking coordinated the deal, alongside RBS, Santander and Barclays, which provided the Doncaster company with a £120m term loan and a £40m standby revolving credit facility.

Polypipe, which is valued at about £490m, used the loan to repay an existing corporate bond which was at a higher rate of interest and provided by lots of different investors via the capital markets.

A Lloyds spokesman said: “The new arrangement also provides a greater degree of flexibility – Polypipe can dip into the revolving credit facility, similar to an overdraft, as and when they need access to capital.”

Founded in 1980, Polypipe is now one of Europe’s largest manufacturers of plastic piping systems. It has a turnover of £300m and more than 2,000 employees at 16 facilities in UK, Europe and Middle East.