11th Mar 2020 10:40
(Alliance News) - Non-Standard Finance PLC on Wednesday said it has entered into a GBP200 million securitisation facility to repay part of its outstanding debt under existing drawn credit facilities.
The new six-year facility is provided by credit funds managed by New York-listed asset manager Ares Management Corp.
The sub-prime lender said the facility is priced more favourably than its existing facility and will result in a pretax saving of around GBP1 million in 2020.
Non-Standard Finance added that the amount will be used to fund continued loan book growth for its branch-based and guarantor loans divisions, as well as to repay a portion of its existing debt.
As at the end of 2019, the company had cash of GBP14.2 million and gross borrowings of GBP323.2 million.
"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," said Chief Financial Officer Nick Teunon.
Shares in Non-Standard Finance were trading 1.8% higher at 22.20 pence each on Wednesday morning in London.
By Ife Taiwo; [email protected]
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