HSBC Group has announced that it led a $125 million refinancing deal for IG Design Group plc (Design Group), one of the world’s leading designers, innovators and manufacturers of gift packaging, celebrations, craft and creative play, stationery, gifting, and related product categories.
The deal was spearheaded by HSBC USA, structured by HSBC USA’s Asset Based Lending team, and supported by HSBC UK, with the bank providing a total of $75 million in funding. The remaining $50 million was provided by NatWest.
The new asset-based revolving credit facility will allow Design Group to support its working capital requirements throughout the year and meet customer demand around peak seasonal gifting times.
The facility also sees the business switch from a UK-based to a US-based funding line, where Design Group generates the majority of its revenue, with an innovative cash management structure that allows for funding of the Group’s global operations.
“Our aim is to not only provide financing and product solutions, but also world-class service, deep sector expertise, and cross-border collaboration that will help our clients achieve their growth targets and goals,” said U.S. Head of International Subsidiary Banking James Gallagher. “Our ability to serve companies around the globe makes us one of the world’s leading international banks.”
“NatWest is pleased to continue to support Design Group with its evolving financing needs, on this occasion with a new U.S.-based receivables facility,” said NatWest Relationship Director Paul Mitchell.
“This deal represents an important milestone in our journey to first restore our pre-Covid performance, and then grow beyond,” said Design Group CEO Paul Bal. “HSBC’s international reach has enabled us to ensure global funding for the Group through our biggest market, helping us to leverage our scale and capabilities for future growth.”
Design Group is an international business with its global headquarters in Newport Pagnell, Buckinghamshire. Its US operations are headquartered in Atlanta, Georgia., and it operates a large factory in South Wales alongside other major facilities in the US, the Netherlands and China.