Packaging company Chesapeake has secured a £75 million refinancing package from asset-based lender Lloyds TSB Commercial Finance.

Consumer packaging company Chesapeake has secured a £75 million refinancing package from asset-based lender Lloyds TSB Commercial Finance (LTSBCF).

The financing was secured against the company’s assets, including receivables and property, and will allow it to pursue future acquisitions and invest in equipment.

Rick Smith, Chesapeake’s CFO, comments: ‘The new facility will allow us to explore further opportunities to broaden our range of products and services as well as extend our presence to new markets.’

International sales director Christopher Hart and business development director Piers Harmer led the LTSBCF team in the negotiation and structuring of the cross-border deal.

Hart tells M&A: ‘We had a pan-European offering, and we said right upfront that we would do the whole £75 million. At the time there were very few players even in asset-based lending that would hold more than about £25 million.’

Chesapeake was acquired out of administration in 2009 by the US private equity investors Irving Place Capital (IPC) and Oaktree Capital Management. The acquisition was funded without using debt, leading the firms to seek bank refinancing once  market conditions improved.

Buckinghamshire-based Chesapeake produces product packaging for customers in sectors including confectionery and pharmaceuticals. The company has 35 manufacturing sites in the UK and across Europe, and has a turnover of around £500 million.