Colway Limited, the holding company for graphic and art supplies, managed print services and office and furniture supplies brands; RED BOX, London Graphic Centre, Turning Point, Integration, London Graphic Systems and RED SPACE, has today secured a £3.25m revolving receivables facility through the specialist Structured Finance Division of Asset Based Lender, ABN AMRO Commercial Finance (http://www.abnamrocommercialfinance.co.uk).
The funding, incorporating a £700k cash flow loan, has enabled the refinancing of legacy debt from Kaupthing, an Icelandic bank that formally entered winding-up proceedings in 2008. The funding will also support the expansion and diversification of Colway Limited’s sub-brands –
London Graphic Systems and Turning Point International – into new product areas such as 3D printing, digital asset management software and super-fast, large format printing.
Founded in 1973, Colway Limited has a long history in the office and graphics supply trade. In 2006, to enable a management buy-out, Colway sought funding from Reykjavik based bank, Kaupthing. Two years later, the bank was put into administration as a result of the Icelandic banking crisis.
Gordon Christiansen, CEO of Colway Limited, comments: “Dealing with a bank in administration created many challenges. Terminating this relationship involved complexities that are not usually apparent in normal funding situations.”
“With ABN AMRO Commercial Finance’s help, who were very patient and sensitive to our position, we’ve been able to extricate ourselves from our relationship with Kaupthing, putting us in a strong position for the future. Now that we’re with a sensible and stable lender, we’re taking this opportunity to reinvigorate the business. ”
Patrick Wilkins, Structured Finance Sales Director at ABN AMRO Commercial Finance comments, “Colway Limited is a very profitable business with a range of trading styles but it was being held back by it’s restrictive relationship with Kaupthing. Taking a flexible approach, we were able to refinance that debt at a discount and allow Colway to finally move forwards and look towards the future.”
Garry Smith of Century 2000, who brokered the deal on behalf of Colway Limited, comments,
“We brought ABN AMRO to the table as we knew from previous experience that we could work closely with them to structure a suite of facilities that would enable Colway Limited to take advantage of new opportunities and support their ambitious plans for the future.”