A Bedford-based IT solutions company has secured a £31.6million senior debt package from Lloyds Bank Commercial Banking to support its future strategy.
Blue Chip, established in 1987 and based on Priory Business Park, provides fully hosted and cloud based IT support services from its Tier 4 Data Centres as well as specialist hardware maintenance and software support for IBM computers and operating systems. With a client base of more than 700 customers, Blue Chip serves multiple sectors, including banking, retail, manufacturing and distribution.
The debt package was provided by Lloyds Bank to facilitate the restructure of the company equity and support its future expansion plans.
This next phase of its growth plan, which includes relocating to a larger HQ, opening a new data centre and hiring new staff members over the next 12 months, will help capitalise on the growing demand for integrated IT solutions.
The senior debt was provided by the bank’s strategic debt finance team, and the business has also switched its day-to-day banking to the Lloyds Bank mid-markets team in Bedfordshire.
Blue Chip has a turnover in excess of £45million and employs over 240 members of staff across its Franklin Court-based head office and multiple data centres.
The company was advised on the deal by James Clark from Capital SCF, Mark Thompson at Shakespeare Martineau and Tina Beddoes at Mazars Tax.
Andy Rounding, finance director at Blue Chip, said: “As we enter a new chapter for the business, it seemed like the right time to review our banking facilities and make some strategic changes that will support our growth ambitions in what is an increasingly competitive market.
“The team at Lloyds Bank fully understood our ambitions and with the new funding in place, we’re well placed to achieve our future expansion plans, increasing our client-base and working towards becoming a nationally recognised brand.”
Andy Clarke, director in Lloyds Bank Commercial Banking’s Strategic Debt Finance team, said: “The debt package we have provided has supported Blue Chip’s new shareholding structure as it prepares for the next steps of its growth strategy. This, and the business’ comprehensive sector expertise, will help it to target substantial long-term growth, generate new local job opportunities and fulfil its potential.”
Derek Neill, relationship director at Lloyds Bank Commercial Banking, said: “As cloud services and data technology become commonplace, it’s important that service providers are reinvesting in their business to keep up with the rapid pace of technological advancements and the demands they face from clients.
“We’re committed to helping ambitious mid-market businesses like Blue Chip reach their growth ambitions and we’re looking forward to working with them again in the future.”