Secure Trust Bank Commercial Finance has provided a £35m finance facility to Meridian Metal Trading.
The finance facility provided by Secure Trust Bank Commercial Finance will be used to support the future growth of the business, as well as meet current working capital requirements.
Established in 1987, the manufacturer supplies sheet metal to over 600 customers in the UK. It currently employs 175 people across its three manufacturing sites in Dudley, Guildford and Sheffield, and additional sales offices in Newport and Bolton. MMT manufactures and supplies almost 240,000 tonnes of steel per year.
The deal follows a significant period of growth for Secure Trust Bank Commercial Finance. The alternative finance provider recently announced that it had doubled its balances for the second consecutive year, with lending at £126.5m in 2017, up from £62.8m the previous year.
Steve Roadway, financial director at Meridian Metal Trading, said: “The steel stockholding and processing industry is highly competitive. In order to maintain its competitive advantage and market positioning, it was imperative for MMT to have a strong and responsive financing partner with industry expertise in its corner.
“The team at Secure Trust Bank Commercial Finance were able to provide a facility in a short timeframe, and were flexible to work around our needs. It is often restrictions on working capital that halts a growing company, and this facility has enabled us to free up cash flow so we can improve and invest in other areas of the business. We look forward to a continued cooperative working relationship with Secure Trust as we endeavour to exceed MMTs growth aspirations “
Sean Powell, national sales director at Secure Trust Bank Commercial Finance, said: “The experienced management team at MMT have laid the foundations for a business with huge potential. Its reputation in the market, alongside its unrivalled product range and capabilities make it one of the UK’s leading independent steel stockholders and processors. Our facility will allow the business to manage its cash and invest in the future. It is an exciting time for MMT, and we’re looking forward to seeing how the company progresses in the next few years.”
Brent Osbourne at Breal Consulting, who acted as advisor and introduced the deal, said: “We have known the MMT team for over 25 years and they approached us seeking a U.K. based lender, which could give them a flexible new asset based lending facility (ABL) and the confidence of a finance partner that could meet their future aspirations.
“Secure Trust Bank (STB) responded immediately and arranged to meet with MMT within a few days with a visit from the senior STB team. The bond was immediate, indicative terms followed quickly and the move to financing was professional and slick. STB to us is a major player in the large ticket ABL market with a flexible, speedy and understanding approach.”
Dave Gledhill at Bermans provided legal advice to Secure Trust Bank Commercial Finance, while Georgina Tripp from the gunnercooke consultancy provided legal advice to Meridian Metal Trading Ltd.