Announcement of Securitisation Transaction

RNS Number : 1211H

Amigo Holdings PLC

13 November 2018

 

13 November 2018

Amigo Holdings PLC

("Amigo" or the "Company")

Announcement of Asset Backed Securitisation Transaction

Amigo Holdings PLC is pleased to announce the completion of its inaugural securitisation facility of £150m (the "Facility"), the first transaction of its kind in the guarantor loan space.

The Facility will be deployed to fund new customer originations as Amigo continues to expand within the UK's non-standard finance market.  The Facility will also be used to repay drawings under the Company's existing revolving credit facility.

The Facility, which has a minimum three-year term and amortises thereafter, will have a funding rate c. 500 bps below the current cost of the Company's senior secured notes and will, in time, lower Amigo's overall average cost of capital. 

Glen Crawford, CEO of Amigo said:

"This new funding line is another significant step forward for Amigo and an industry first for the guarantor loan sector. The securitisation is in line with our stated intention to continue to diversify our funding sources and reflects the market's belief in the underlying quality of our business."

The Facility is provided by RBC Europe Limited (trading as RBC Capital Markets) as Sole Lead Arranger.

This announcement constitutes notice by Amigo Luxembourg S.A. (the "Issuer") to the holders of the Issuer's £400,000,000 Senior Secured Notes due 2024 (for the notes issued pursuant to Rule 144A of the United States Securities Act of 1933, ISIN: XS1533928468 and Common Code: 153392846; for the notes issued pursuant to Regulation S of the United States Securities Act of 1933, ISIN: XS1533928625 and Common Code: 153392862) (the "Notes") issued pursuant to pursuant to Section 4.03(a)(3) of an indenture dated January 20, 2017 among, inter alia, the Issuer, the guarantors named therein and U.S. Bank Trustees Limited, as trustee and security agent.  Amigo Holdings PLC is the indirect parent company of the Issuer. This announcement shall constitute a "Report" to holders of the Notes.

This announcement contains inside information for the purposes of article 7 of Regulation 596/2014 ("MAR").

-ENDS-

Contacts:

Hawthorn Advisors Tel: [phone]

[e-mail]

Lorna Cobbett

Victoria Ainsworth

J.P. Morgan Cazenove (Joint Corporate Broker) Tel: [phone]

Ina De

Kamalini Hull

RBC Capital Markets (Joint Corporate Broker) Tel: [phone]

Oliver Hearsey

Marcus Jackson

Notes to Editors:

About Amigo Loans

Amigo Holdings PLC ("Amigo" or the "Company") is listed on the main market of the London Stock Exchange (ticker: AMGO).  Amigo is the leading company in the UK guarantor loans market and offers access to mid-cost credit to those who are unable to borrow from traditional lenders due to their credit histories.

The guarantor loan concept introduces a second individual to the lending relationship, typically a family member or friend with a stronger credit profile than the borrower. This individual acts as guarantor, undertaking to make loan payments if the borrower does not.

Amigo was founded in 2005 and has grown to become the UK's largest provider of guarantor loans, with approximately 88% UK product share as of 31 March 2018. In the process, Amigo's guarantor loan product has allowed borrowers to rebuild their credit scores and improve their ability to access credit from mainstream financial service providers.

Amigo operates within the mid-cost credit market providing a simple and transparent product - a guarantor loan at an APR of 49.9%, with no fees, early redemption penalties or any other charges.

Amigo Loans Ltd and Amigo Management Services Ltd are authorised and regulated in the UK by the Financial Conduct Authority (FCA). 

 

END

 

 

MSCBTBBTMBABTBP