Non-Standard Finance PLC Extension of Existing Bank Facilities (7381Z)
March 17 2017 - 2:00AM
UK Regulatory
TIDMNSF
RNS Number : 7381Z
Non-Standard Finance PLC
17 March 2017
Non-Standard Finance plc ('NSF')
('Non-Standard Finance' or the 'Group')
Extension of existing bank facilities
17 March 2017
The Group is pleased to announce that under the terms of its
existing GBP85m facility with Royal Bank of Scotland, Shawbrook
Bank and Secure Trust Bank (the 'Lending Banks'), it has secured
agreement to exercise the GBP20m accordion for Everyday Loans,
increasing the size of the facility to GBP105m. The accordion
funding has been provided by Royal Bank of Scotland. At the same
time, the Group has also amended the terms of the facility as
follows:
-- A new GBP20m accordion is now in place, so that, if exercised
with the consent of the Lending Banks, the total facility would
increase to GBP125m;
-- The advance rate on performing loans has been increased from
65% previously to 70%, thereby enabling Everyday Loans to increase
its borrowing against its performing loan book (at 31 December 2016
the loan book was GBP122.4m (before fair value adjustments));
and
-- The amended facility has been extended from December 2018 to March 2020.
All other terms of the facility remain unchanged.
Commenting on today's announcement, Nick Teunon, Chief Financial
Officer said:
"With committed funding now totalling GBP115m and an option to
increase this to GBP140m, with the consent of our lending banks,
the Group is well-funded to deliver our growth plans over the next
few years."
- Ends -
For more information:
Non-Standard Finance plc
Peter Reynolds, Director, IR and +44 (0) 20 3869
Communications 9026
Bell Pottinger
Dan de Belder
Aarti Iyer +44 (0) 20 3772
Molly Stewart 2500
About Non-Standard Finance
Non-Standard Finance plc was established to acquire and grow
businesses in the UK's non-standard consumer finance sector. Under
the direction of its highly experienced main board, the Company has
now established a sustainable group of businesses offering credit
to the c.12 million UK adults who are not served by mainstream
financial institutions. In addition, the businesses acquired now
have access to increased levels of funding and have benefited from
stronger management controls with more rigorous credit standards;
have refined their product pricing in a number of areas; have
introduced new compliance protocols; and are investing in new IT
infrastructure and systems. These changes have been implemented to
balance the delivery of improved customer outcomes with the
delivery of substantial returns for shareholders.
The Company announced on 7 July 2015 that it had entered into an
agreement to acquire the Home Credit Division of S&U plc
('S&U') which trades as Loans at Home, for an enterprise value
of GBP82.5m, payable in cash, subject to approval by S&U's
shareholders and customary closing conditions. The acquisition
completed on 4 August 2015 following approval by S&U's
shareholders with the final consideration equalling GBP82.4m after
an adjustment for net assets at completion.
On 4 December 2015 the Company announced that it had entered
into an agreement to acquire Everyday Loans, the branch-based
unsecured lending and guaranteed loans business of Secure Trust
Bank PLC, for an enterprise value of GBP235m. The acquisition, that
was funded through a combination of new equity and debt facilities
completed on 13 April 2016, following change of control approval
from the FCA.
In the year ended 31 December 2015, the Group's businesses
generated pro forma revenue of approximately GBP80m and pro forma
adjusted profit before tax of approximately GBP16m. As at 31
December 2015 the Group's businesses had a combined loan book of
approximately GBP143m.
Each of the Group's operating subsidiaries is regulated by the
FCA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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