Zeus Capital acted as Nomad and Joint Broker to Safestyle UK plc on its £8.5m raise

Zeus Capital has acted as Nomad and Joint Broker to Safestyle UK plc, the leading UK‐focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner market, on its £8.5m raise.

The proceeds of the raise will principally be used to strengthen Safestyle’s balance sheet so that the business is well capitalised and has a strong cash buffer to ensure it can continue in business through, and accelerate out of, the current crisis relating to the COVID-19 outbreak.

Simultaneously, Safestyle’s banking covenants will be waived for up to six months and a reduced EBITDA covenant target will be in place for the rest of the year following resumption of trading.

The raise is conditional upon the approval at a general meeting of Safestyle’s shareholders on 27 April 2020.

The strong support received from our shareholders, both existing and new, in the current challenging market is hugely welcome. Together with our existing funding arrangements, this equity fund raise significantly strengthens our balance sheet, providing further headroom should we need to extend our temporary shutdown in line with Government guidance, protecting the NHS and saving lives.

 

Mike Gallacher
Chief Executive Officer of Safestyle UK plc

We are delighted to have helped Safestyle raise £8.5m. The proceeds of the raise place Safestyle in a resilient position to be able to operate through the COVID-19 pandemic and to recommence positive trading momentum thereafter. It has been a pleasure working with Mike, Rob and the Safestyle team on this transaction and on an ongoing basis, and we look forward to continue working with them in the coming years.

 

Dan Bate
Corporate Finance Director at Zeus Capital

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