New £200m Securitisation Facility

RNS Number : 6900F

Non-Standard Finance PLC

11 March 2020

 

PRESS RELEASE  

Non-Standard Finance plc

('NSF', the 'Company' or the 'Group')

11 March 2020

New £200m Securitisation Facility

NSF is pleased to announce that it has entered into a new, six-year securitisation facility totalling £200m (the 'New Facility'), at pricing that is more favourable than its existing facility and is expected to result in a pre-tax saving of approximately £1m in the year ended 31 December 2020.  On satisfaction of certain conditions precedent (which the Company anticipates will occur shortly), the New Facility will be available to fund continued loan book growth for the Group's fast-growing branch-based and guarantor loans divisions.  It is also expected that the New Facility will be used to repay a proportion of the current outstanding debt under the Company's existing drawn credit facilities. The New Facility is provided by credit funds managed by Ares Management Corporation (NYSE: ARES).

As at 31 December 2019 the Group had cash at bank of £14.2m (2018: £13.9m) and gross borrowings of £323.2m (2018: £272.8m). 

Nick Teunon, NSF's Chief Financial Officer said:

"This new source of funding is an important milestone for the Group. Not only will the securitisation allow us to further diversify our funding sources, it also signals a clear recognition of the quality and confidence in the Group's two largest and fastest-growing businesses."

Lazard & Co. Limited acted as adviser to the Group in respect of the New Facility.

Jeffrey Kramer, Partner in Alternative Credit for Ares Management said:

"We are pleased to support the growth of NSF with this securitisation facility, which will better position the Company to execute on its strategic objectives. This transaction is another example of Ares' ability to use flexible capital to provide tailored financing solutions across the alternative credit market."

This announcement contains inside information for the purposes of article 7 of Regulation 596/2014 ('MAR'). The person responsible for arranging the release of this announcement on behalf of NSF is Peter Reynolds, Director, IR and Communications.

For more information:

Non-Standard Finance plc Peter Reynolds, Director, IR and Communications

[phone]

 

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