Octopus refinances Kaupthing-backed CSL

Alarm systems company CSL Dualcom has secured a refinancing deal with Octopus Investments following the collapse of its Icelandic bank.

Alarm systems company CSL Dualcom has secured a refinancing deal with Octopus Investments following the collapse of its bank, Kaupthing Singer & Friedlander.

Octopus, a venture capital and private equity group which also offers ‘flexible debt’, has extended a five-year interest-only loan of £2.65 million to CSL, one of its portfolio companies.

Stuart Nichol, director of Octopus Investments, says the firm has raised £40 million through venture capital trusts (VCTs) to provide similar debt funding to ‘secure and profitable SMEs’.

Adds Nichol, ‘For our investors, the provision of interest-only loans to companies like CSL offers a low risk investment opportunity which, when combined with the various tax incentives associated with VCT investment, makes the potential for returns extremely compelling.’

Law firm Wragge & Co advised Octopus on the transaction, while BLP represented CSL. Financial due diligence was provided by BDO Stoy Hayward with commercial due digilence offered by Latitude.

Nick Britton

Nick Britton

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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