Non-Standard Finance PLC Acquisition of George Banco, £225m term loan & RCF (9662M)
August 03 2017 - 1:02AM
UK Regulatory
TIDMNSF
RNS Number : 9662M
Non-Standard Finance PLC
03 August 2017
Non-Standard Finance plc
('NSF' or the 'Group')
3 August 2017
Acquisition of George Banco
GBP225m new term loan facility
GBP35m new revolving credit facility
Highlights
-- NSF has agreed to acquire George Banco for GBP53.5m in cash
-- NSF is now the clear number two in the UK's fast growing guaranteed
loans segment
-- Together with TrustTwo, the Group had a combined guaranteed
loan book of c.GBP40m as at 30 June 2017, representing approximately
20% of the enlarged Group total
-- The acquisition is expected to be earnings enhancing in the
first full year post-acquisition (2018)
-- In the 12 months to 31 May 2017, George Banco generated revenue
of GBP9.3m and EBITDA of GBP4.1m
-- Acquisition and refinancing is via a new GBP225m six-year
loan facility provided by institutional investors
-- Additional funding available via a new GBP35m revolving credit
facility provided by RBS
NSF is pleased to announce that it has agreed to acquire George
Banco Limited ('George Banco') from its existing shareholders for
an enterprise value of GBP53.5m, payable in cash. Completion is
expected in September 2017 and the acquisition is expected to be
earnings enhancing in the first full year following completion.
Having launched in April 2014, George Banco has grown rapidly to
become the number two player in the UK's growing guaranteed loans
market, with a total net loan book of approximately GBP30m. As part
of a larger Group, we believe there is scope to continue to develop
the business further and to grow profits substantially.
To finance the acquisition and refinance all of the Group's
existing debt facilities, as well as to provide additional funding
to support future growth, NSF has secured a new GBP175m term loan
facility (the 'Term Loan'), provided by a group of institutional
investors, led by Alcentra Limited. The new six-year loan bears an
interest rate of LIBOR plus 725 basis points per year with interest
payable every six months. The same investors have also agreed to
provide an additional committed facility of up to GBP50m under the
same terms as the Term Loan. In addition, the Group has also
secured a new GBP35m revolving credit facility ('RCF') provided by
Royal Bank of Scotland.
Commenting on the acquisition and refinancing, John van
Kuffeler, Group Chief Executive said:
"George Banco represents a transformative acquisition for the
Group, putting NSF into the clear number two position in the
fast-growth guaranteed loans segment. Complementing our existing
TrustTwo brand, George Banco provides us with real scale and an
opportunity to grow even faster.
"With leading positions in each of our chosen segments, we now
have a stable, long-term funding platform from which we can finance
our growth plans. We will continue to seek strategic opportunities
in the UK's non-standard finance sector that meet our stringent
criteria for growth and return on assets."
- Ends -
For more information:
Non-Standard Finance plc
John van Kuffeler, Group Chief
Executive
Nick Teunon, Chief Financial Officer
and Company Secretary
Peter Reynolds, Director, IR and +44 (0) 20 3869
Communications 9026
Bell Pottinger
Jonathan Hodgkinson
Aarti Iyer +44 (0) 20 3772
Molly Stewart 2500
Interviews with John van Kuffeler, Chairman and Nick Teunon,
Chief Financial Officer
Interviews with John van Kuffeler and Nick Teunon will be
available as video and text from 7.00 am on 3 August 2017 on the
Group's website: www.nonstandardfinance.com.
Analyst meeting, webcast, dial-in and conference call
details
There will be an analyst meeting at 9.00 am on 3 August 2017 for
invited UK-based analysts at the offices of JP Morgan, 60 Victoria
Embankment, London, EC4Y 0JP (the entrance is in John Carpenter
Street). The meeting will be simultaneously broadcast via webcast
and conference call. To watch the live webcast, please register for
access by visiting the Group's website www.nonstandardfinance.com.
Details for the dial-in facility are given below. A copy of the
webcast and slide presentation given at the meeting will be
available on the Group's website later today.
Dial-in details to listen to the analyst presentation at 9.00
am, 3 August 2017
08.50 Please call +44 (0)330 336
am 9411
Access
code 8462263
9.00 am Meeting starts
All times are British Summer Time (BST).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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