The deal was spearheaded by HSBC USA, structured by HSBC USA’s Asset Based Lending team, and supported by HSBC UK, with the bank providing a total of $75 million in funding. The remaining $50 million was provided by NatWest.
The new asset-based revolving credit facility will allow Design Group to support its working capital requirements throughout the year and meet customer demand around peak seasonal gifting times.
The facility also sees the business switch from a UK-based to a US-based funding line, where Design Group generates the majority of its revenue, with an innovative cash management structure that allows for funding of the Group’s global operations.
“Our aim is to not only provide financing and product solutions, but also world-class service, deep sector expertise, and cross-border collaboration that will help our clients achieve their growth targets and goals,” said U.S. Head of International Subsidiary Banking James Gallagher. “Our ability to serve companies around the globe makes us one of the world’s leading international banks.”
“NatWest is pleased to continue to support Design Group with its evolving financing needs, on this occasion with a new U.S.-based receivables facility,” said NatWest Relationship Director Paul Mitchell.
“This deal represents an important milestone in our journey to first restore our pre-Covid performance, and then grow beyond,” said Design Group CEO Paul Bal. “HSBC’s international reach has enabled us to ensure global funding for the Group through our biggest market, helping us to leverage our scale and capabilities for future growth.”
Design Group is an international business with its global headquarters in Newport Pagnell, Buckinghamshire. Its US operations are headquartered in Atlanta, Georgia., and it operates a large factory in South Wales alongside other major facilities in the US, the Netherlands and China.
Vice President of External Communications, US
Notes to editors:
HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through Wealth and Personal Banking, Commercial Banking, Private Banking, Global Banking, and Markets and Securities Services. It operates Wealth Centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc. In the United States, deposit products are offered by HSBC Bank USA, N.A., Member FDIC.
About HSBC UK
HSBC UK serves over 14.75 million customers across the UK, supported by 24,000 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates.
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of $2,990bn at 31 March 2023, HSBC is one of the world’s largest banking and financial services organisations.
For further information, visit: https://www.us.hsbc.com