May 2008 – Coats PLC, a global leader in sewing thread and needlecraft products, has agreed a $85million refinancing deal with The Royal Bank of Scotland (“RBS”) to help grow its business operations.
Established in 1755, Coats was listed on the London Stock Exchange in 1890. After the globalisation of its manufacturing operations and its mergers with Patons & Baldwins and Vantona Viyella, Coats decided to refocus on its global thread business. In 2003, Guinness Peat Group acquired Coats and ordinary shares were de-listed from the Stock Exchange.
Today, Coats has unparalleled service and technical support in 73 countries worldwide. It is the largest producer of thread for the apparel, footwear and associated industries in the world – by a factor of four compared to its nearest competitor.
RBS is a Joint Mandated Lead Arranger and has structured a $85million refinancing facility to support Coat’s day to day liquidity requirements. The facility is part of a larger $625million refinancing package which is being funded by RBS, HSBC, HBOS, Barclays and other banks.
The RBS team, led by Roy Bawden, Relationship Director for Industrials, recognised the benefits of a collaborative approach and involved RBS Corporate and Debt Origination team, Global Transaction Services, Corporate Treasury Solutions and ABN Amro. With RBS and ABN Amro’s extended global footprint, the financial services group is now present in 38 of the 73 countries in which Coats operates.
Mike Smithyman, CEO of Coats PLC, said:
“We are very grateful to RBS for the funding line put in place and the work done by all parties involved in concluding this deal in a timely and professional manner. RBS has a large global presence and fit well with Coats’ international reputation. We have been impressed with RBS’ commitment and dedication to our business and look forward to working with them in our business expansion endeavours.”
Roy Bawden, Relationship Director for Industries at RBS, added:
“We’re delighted to be working with Coats again. The new financial package put in place for the company means that they can implement their plans from a sound and secure platform. As the largest producer of woven threads for the apparel industry in the world, they are in a unique position. We look forward to continuing to support their growth.”