Wells Fargo provides credit facility to First Milk

Wells Fargo is providing an asset-back facility similar to one it recently provided to UK-electronics retailer Maplin.

Wells Fargo Capital Finance UK has provided a revolving asset-based credit facility to UK-dairy provider First Milk as part of a refinancing effort. The dairy company was advised on the refinancing by Marlborough Partners, the advisory firm announced. 

The terms of the facility were not noted in the announcement. Wells Fargo typically provides credit facilities ranging from £10 million upwards, according to a statement from the firm.

The facility comes on the heels of Wells Fargo financing another UK business. The firm acted as agent and lead arranger of an asset-based facility to Maplin last month in a bid to aid the electronics retailer’s online efforts.

Tim Metzger, managing director at Marlborough Partners, told PDI First Milk had previously had a credit facility, provided by Barclays and Lloyds, since 2012. The facility was refinanced in 2015 and renewed later that year—leaving First Milk with approximately £70 million in debt. 

The new facility is an asset-backed facility, Metzger noted, backed by, among other assets, First Milk’s accounts receivables. It is similar in its structure to the facility provided by Wells Fargo to Maplin, he added.

First Milk recently announced it had completed a turnaround of its business, begun in early 2015. Among changes to the business are a new management team, new governance structure and a new business strategy, according to materials on the company’s website. 

Metzger added Marlborough is aiming to boost the number of sponsorless deals, like this one, it’s advising on. He joined the firm last year as part of this push.

A spokesman for First Milk and a spokeswoman from Wells Fargo did not return calls seeking additional comment by press time.