Arbuthnot Commercial ABL provides C3 Construction with a £10m hybrid funding package

By Bridging Loan Directory 10th August 2022

Arbuthnot Commercial ABL has structured and delivered a hybrid funding line totalling £10m to support C3 Construction Limited (C3 Construction) in implementing its strategic plans.

In addition to providing working capital to facilitate further growth, Arbuthnot Commercial ABL structured a term loan facility designed specifically to enable the board to conclude a shareholder reorganisation.

The construction business had outgrown its previous banking facility, with credit and concentration limits restricting the availability of working capital.

Established over 20 years ago, C3 Construction is a Leicestershire-based groundworks, road, and sewer contractor working predominantly for national house builders and developers with a focus on the East Midlands.

Over the last two years, the business has grown at an impressive rate and has succeeded in doubling its turnover to over £100m.

Commenting on the transaction, Joel Denham, Chairman, C3 Construction Limited, said:

“We are very pleased to have found a supportive funding partner in Arbuthnot Commercial ABL.

They showed a real appetite to resolve our particular set of circumstances and a commitment to provide a complete funding solution without diluting equity.

Having looked at the whole picture, Arbuthnot came back with a facility that offers even more liquidity than we requested.

Their team has been brilliant to work with from the word go, very straightforward and responsive.

Having dealt with banks over the past 20 years, working with Arbuthnot is the first time I have ever felt like a customer.

They have delivered everything that they said they would and have been a breath of fresh air.”

Matthew Proudlove, Finance Director, C3 Construction Limited, added:

“Arbuthnot Commercial ABL has structured a flexible working capital facility aligned with the size of the business that will provide a platform for growth, combined with an additional term loan that has allowed us to successfully effect a shareholder reorganisation.

Their team has been positive and proactive throughout the process. Little things like calling on a Friday afternoon to make sure that the facility is working for us should be natural but in practice, that doesn’t happen with many banks.

With Arbuthnot Latham, personal service is second nature, and we very much appreciate that approach.”

Andrew Rutherford, Commercial Director, Arbuthnot Commercial Asset Based Lending, commented:

“At Arbuthnot Commercial ABL we are focused on backing great businesses, without the prescriptive sectoral restrictions that impact performance and growth.

We were pleased to support the management team at C3 Construction with a funding package that fully meets the key strategic objectives of the business so that they can drive forward with their plans.”