Paperchase, the design-led stationery, greeting cards and gifts specialist, has secured a £50m refinancing package that will further support and enhance the company's strong growth ambitions in the UK and internationally.
The financing package includes a £32m six-year term loan from direct lending fund Permira Credit Solutions II and £18m of capex, revolving credit and ancillary facilities from Lloyds Banking Group.
Paperchase will remain under the ownership of Primary Capital, a leading provider of private equity to UK-based growth companies, and existing management led by chief executive Timothy Melgund. The debt investors have been attracted by the company's strong trading and prospects for the future.
Timothy Melgund, Chief Executive, said: "We are delighted to have agreed this arrangement with two very well known funders. The debt will enable us to further build on the momentum in the business and continue to deliver our ambitious growth plans."
Dan Hatcher, Investment Director at Permira Debt Managers, said: "We have long admired Paperchase's clear leadership in its market and its dedication to innovation and growth year after year. We are delighted to be part of that story with our European direct lending fund providing substantial growth capital to support the company’s ambitious plans."
