Barclays and Lloyds TSB have underwritten a GBP 230 million multicurrency term and revolving facilities agreement with Melrose, as regards acquisition of Dynacast and McKechnie Groups.

Barclays and Lloyds TSB have jointly arranged and underwritten a GBP 230 million multicurrency term and revolving facilities agreement with Melrose, as part of Melrose's proposed acquisition of the Dynacast Group and the McKechnie Group. Each bank has underwritten half of the new facility, of which GBP 200 million will be used to finance part of the cash consideration for the acquisitions, with GBP 30 million available for general corporate purposes. The existing debt of the McKechnie Group and the Dynacast Group will be repaid on completion.

Andy Martin, National Director of Manufacturing, Barclays, said: 'This deal is further evidence of Barclays' leadership position in the UK manufacturing sector'.

'We were able to combine the transaction financing expertise of the bank with the strong sectoral knowledge of our manufacturing team, to provide the funding package for this deal.' Trevor Burgess, Director of Capital Markets, Lloyds TSB, said: 'We are delighted to be supporting Melrose in providing the debt funding for this transaction'.

'Both companies were already banking with Lloyds TSB and we are very pleased to see Melrose emerge as the new owners of these high quality businesses.' * About Barclays Manufacturing Team - Barclays is the leading bank in the UK manufacturing industry, supporting over 1,600 manufacturing customers in its larger business division.

The team's relationship directors act as a gateway to the full spectrum of Barclays services, comprising debt capital market products, leveraged finance, international banking services, investment management, asset finance and sales finance.

Additionally, the team provide access to specialist products, tailored to the sector such as supply chain funding, inventory and trade finance, as well as treasury and energy hedging products.