Pz Cussons advised by Herbert Smith Freehills on its new Sustainability-Linked Term Loan and Revolving Credit Facility
Pz. Cussons advised by Herbert Smith Freehills on its new Sustainability-Linked Term Loan and Revolving Credit Facility
PZ. Cussons has a new £325 million committed credit facility granted by a syndicate of lenders, and Herbert Smith Freehills is serving as legal counsel.
The £325 million revolving credit facility held by PZ Cussons, which was set to expire in November 2023, has been refinanced by a new term loan and revolving credit facility with a maturity period of up to November 2028.
This innovative refinancing is unique in that it incorporates sustainability-related elements for the first time, such as a margin adjustment pricing structure linked to PZ Cussons' new sustainability framework and the addition of ESG KPIs focused on topics like B Corp certification, a decline in virgin plastic packaging, and carbon emissions. On the deal, PZ Cussons received advice from the Herbert Smith Freehills team. PZ Cussons has pledged to include scope 3 carbon emissions targets in its ambitious goals to ensure that its business divisions receive B Corp certification for the lifetime of the facility.
PZ Cussons is a consumer goods company with roots in Manchester, UK dating back to 1884 and a current listing on the FTSE250. Its operations in Europe, North America, Asia/Pacific, and Africa are home to almost 3,000 employees.
Partner in London Finance at Herbert Smith Freehills Kristen Roberts was supported by senior associate Stacey Pang, associate Emma Hallam, and trainee solicitor Olivia Sommerville.
Kristen Roberts expressed: "We are grateful for helping PZ Cussons secure this cutting-edge new credit arrangement. PZ Cussons is a pioneer in the field of sustainability-linked loans by including a focus on B Corp accreditation as a key performance indicator. This innovative strategy is representative of a broader market trend toward "embedding sustainability goals within debt financings" by a growing number of corporations."
PZ Cussons' Group Director of Tax and Treasury, Richard Walker, mentioned: "We are overjoyed to share the news that our strategic sustainability framework and debt financing objectives have been brought into closer harmony through this creative restructuring. To that end, we wish to express our gratitude to Herbert Smith Freehills, particularly Kristen Roberts, Stacey Pang, and their team."
