AVF Holdings

Deal Summary

Catalyst acted for AVF in a £15 million refinancing which secured new senior debt and working capital facilities.

Established in 1978 and based in Telford, AVF designs and supplies wall mounts for TVs, DVD players and other home appliances. With factories in China, AVF supplies retailers in the US, UK and Europe, including Comet, B&Q, Tesco, Argos, Wal-Mart and CostCo.

What difference did we make?

Having worked previously with AVF management on their MBO in 2004, we had stayed close to the business as it continued to grow.

With management seeking to buy out the minority shareholders, as well finance growth in its European and US businesses, we needed to find a debt structure that reflected the international nature of the business and enable a share purchase.

Our greatest challenge on this deal was identifying a deliverable solution in the midst of the banking crisis. Despite this, our knowledge of the debt market enabled us to raise a tranche of senior debt from Yorkshire Bank and preference shares from two private shareholders to facilitate the share purchase and provide a stronger capital base for AVF.