Strategic Public Equity strategy invests £3m in Northbridge Industrial Services Plc

We are delighted to announce the details of an investment made within our Strategic Public Equity division which completed last week. Please find below a brief synopsis of the deal.

  • Company Name: Northbridge Industrial Services plc (NBI LN)
  • Sector: Industrials (Loadbanks, Electrical testing equipment & Oil tools)
  • Gresham House Strategic Equity investment: c.£4.0m (split between Gresham House Strategic plc, Gresham House Strategic Public Equity LP and LMS Capital plc)
  • Structure & Terms: Convertible Loan Note (CLN); 8.0% coupon, 3yr term, 125p conversion price

Gresham House’s Public Equity division has added to its existing equity investment in Northbridge Industrial Services with a £3.4m investment in Convertible Loan Notes announced this week with Northbridge’s annual results. LMS Capital plc, also managed by Gresham House’s Strategic Equity division, invested a further £0.6m alongside the Public Equity funds.

Northbridge manufactures specialist industrial equipment for hire and sale across the globe, and the product range includes loadbanks, transformers and oil tools. The deal was arranged by Gresham House and has been worked on with the company for a number of months in conjunction with its bankers. It is the latest step in a long term strategic relationship with the company – a key element of the Strategic Equity investment philosophy. The funds have allowed Northbridge to consolidate its banking relationships, pay off bank debt and provides flexibility to increase CAPEX when appropriate as sector conditions continue to improve.

The investment has allowed us to add to our existing equity investment in Northbridge, the first of which was made in April 2016, as the recovery story begins to take hold. Further details on the CLN can be found here as well as their latest trading statement posted 12th April.

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