Background
• CPP Group Plc (“CPP”) operates in the emerging Life Assistance market. Its products and services are designed to simplify the complexities of everyday living whether these affect personal finances, home, travel, personal data or future plans. CPP’s products include Card Protection, Identity Protection, Phonesafe and Dogtag Travel Insurance.
• CPP is headquartered in York (UK), employs more than 1,700 employees and for the year to 31 December 2007 had revenues of £225.2 million.
• CPP has over 10 million customers and more than 280 business partners across Europe, North America and Asia. Business partners include Citibank, HSBC, Barclays, Royal Bank of Scotland, Santander, BBVA, BNP Paribas and Standard Chartered.
• During 2007, the CPP Board and its shareholder, Hamish Ogston, were keen to explore various strategic options for the company, particularly in the context of the changes to the Capital Gains Tax rules in April 2008. After this review it emerged that a refinancing would be the best means to return funds to the shareholders and optionholders, and secure working capital facilities to support the development of the business.
Process & Outcome
• Sitting alongside the lead financial adviser, Close Brothers Corporate Finance provided independent financial advice on the strategic review and refinancing processes, acting as a strategic sounding board for the company and its shareholder, providing a second point of view on a number of key issues and selecting, negotiating and structuring engagement terms in respect of the various other advisers involved in the transaction.
• The new £130 million senior debt package was structured as a club facility arranged by Lloyds TSB, HSBC, Royal Bank of Scotland, Barclays and Allied Irish Bank.
• Given the challenging debt market conditions, the provision of the facility underlines the quality of the CPP business and will help the group continue to deliver impressive double-digit growth.
Testimonial
Shaun Parker, CFO of CPP, commented:
“We appointed Close Brothers Corporate Finance as our independent financial advisor for our strategic review to ensure that we ran a cost effective process and to provide us with impartial advice. When the decision was taken to re-finance the business in what were unprecedented debt markets, the advice we received from Close Brothers Corporate Finance helped us make sure that the process we ran maximised our chances of success. I was impressed with the extensive and up to date knowledge and practical advice which the Close Brothers Corporate Finance debt advisory team brought to the transaction.”
For more information regarding this transaction, please contact the following individuals on +44 (0) 20 7655 3100:
Strategic Review - James Craven
Debt Advisory - Daniel Morland, Jonathan Broome or Harry Kalmanowicz.