An environmental, engineering and technical services business that owns more than 100 firms has received £1bn of available debt facilities from a US giant.
Global investment manager Ares Management Corporation said on Monday it will be the sole lender for the £1bn loan to Cheshire-headquartered RSK Group, which has acquired dozens of firms in recent months.
According to New York Stock Exchange-listed Ares, the transaction marks the largest private credit-backed sustainability-linked financing to date - and will be used to refinance RSK’s existing credit facilities as well as support its continued organic and inorganic growth plans.
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Michael Dennis, co-head of the Ares European direct lending strategy, said: “We are excited to continue to grow our longstanding relationship with RSK through this significant financing that is a first for both of our businesses and further connects us to a shared sustainability commitment.
"We have enjoyed the opportunity to be a financing provider to Alan and his team for nearly three years as they have executed on an impressive strategy to scale RSK’s capabilities and its mission of expanding ESG into its clients’ business model and practices.
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"We are confident that the positive tailwinds for ESG across the spectrum of businesses and sectors will continue to drive demand for RSK’s service offering, and we are proud to support the company on this journey.”
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The new debt facilities include an annual margin review based on the achievement of sustainability targets - focused on carbon intensity reduction and continual improvement to health and safety management and ethics.
RSK said it anticipates interest savings of over £500,000 per year - and has committed to donate a minimum of 50% of the margin benefit toward sustainability-related initiatives or charitable causes.
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Founded in 1989, Helsby-based RSK is a fully integrated, environmental, engineering and technical services group currently comprised of over 100 businesses and employing more than 6,000 specialists.
CEO Alan Ryder added : “There are very few firms like Ares that possess the scale, flexibility and sharp focus on ESG to provide a sustainability linked financing of this kind. This financing demonstrates our deep commitment to driving sustainable business practices not just within our clients’ businesses, but also within our own.
“We look forward to continuing the great relationship we have with the Ares team while responsibly expanding our services and geographic footprint as we strive to bring the most comprehensive range of sustainable solutions to our clients.”