New funding facilities support Dealogic's ongoing development
/ January
Dealogic (Holdings) plc, "Dealogic," providers of the platform of technology, information and consulting utilised by investment banks worldwide to optimise performance and improve competitiveness, has entered into a new funding relationship through a club jointly run by Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB) and Barclays.
Supporting corporates
Senior debt facilities of $65m and a $15m revolving credit facility from its new banking partners were primarily used to fund a tender offer in the wake of its de-listing from the AIM market in July last year, a decision driven by concerns over the lack of liquidity for the company's shares on the AIM market. These new funding facilities were used primarily to buy out existing shareholders who did not want, or were unable, to hold shares in an unlisted company.
Dealogic, a strongly cash generative business, recently reported a 21% increase in first half revenue for 2011 to $58m driven by increased adoption of the investment banking platform and supplemented by stronger global capital market activity. The firm, which currently has 550 employees globally, is well positioned to continue its significant investments in technology and people as it expands the scope and worldwide reach of its Investment Banking Management Platform. Founded in London in 1983, it now also operates from offices in New York, Hong Kong, Tokyo, Mumbai, Sydney and Budapest.
Rick McHattie, chief financial officer at Dealogic, said: "When selecting our funding partners it was important to have a relationship with a team that understood the strong fundamentals of our business as well as the market drivers within the global environment in which we operate. We were therefore delighted with the tailored funding package provided by RBS and Barclays. We remain in a position of strength to continue to grow our business as we work with our clients to expand the use of our platform amongst investment banks worldwide to help them achieve their global objectives and enable them to optimise the flow of the world's capital."
Mark Robertson, business development director in the Services sector team for RBS CIB, said: "We are delighted to be working with Dealogic, a high-profile company which has been a key business target for us. In addition to the debt facility, we have also provided Dealogic with interest rate hedging and are also in discussions regarding foreign exchange and cash management services.
"The deal was won from the incumbent bank in a highly competitive process, reflecting the joint efforts of the RBS Services sector team, as well as our colleagues in Structured Finance, Corporates. Our strong understanding of the business and their industry sector, combined with an attractive and flexible funding package, led Dealogic to appoint us as coordinator and agent bank for this club transaction."