Completion of Acquisition and Financing

4 May 2016

Arrow Global Group PLC

Completion of Acquisition and Financing

Arrow Global Group PLC ("Arrow" or the "Group"), one of Europe's leading purchasers and managers of debt, is pleased to announce that it has today completed the acquisition of InVesting B.V. ("InVesting"), a leading consumer debt purchaser and collections provider with operations in the Netherlands and Belgium (the "Acquisition"). The total consideration for the Acquisition was around €100m on an enterprise value basis, which included the acquisition of €663m of portfolios by face value and an Estimated Remaining Collections (ERC) of €107m. The Acquisition, which was announced on 1 April 2016, has obtained the necessary positive advice from the works council and approval from the Netherlands Authority for the Financial Markets.

Following the completion of the Acquisition, Arrow expects capital-light asset management operations to account for around 25% of Group revenues on a pro forma full-year basis. The Acquisition is expected to be EPS accretive and ROE enhancing from 2017 and to be EPS neutral in 2016 while the businesses are integrated.

Arrow has successfully closed its offering of €230m of seven-year Floating Rate Notes (the "FRNs"), bearing an interest rate of EURIBOR plus 4.75% per year. Proceeds from the offering of the FRNs are being used to repay outstanding amounts under an existing credit facility, fund the Acquisition consideration, and pursue Arrow's organic growth strategy. The FRNs provide further balance sheet liquidity, reduce Arrow's weighted average cost of debt and extend Arrow's average debt maturity to 5.4 years.

As a result of both the completion of the Acquisition and associated financing, Arrow has further strengthened its position as a leading European player in the debt purchase and asset management business, with operations in the UK, Portugal, the Netherlands and Belgium, and with a significant minority interest in a market leader in France. This is in line with the Group's stated strategy of being a top three player in each of its chosen markets. Management continues to evaluate further opportunities for growth and have the operational and financial structures in place to execute on these opportunities. 

Enquiries:

Arrow Global +44 (0)161 242 5896

Tom Drury

Robert Memmott

Alex Barnett

Instinctif Partners +44 (0)20 7457 2020

Mike Davies

Giles Stewart

The offering of the FRNs was made by means of an offering memorandum. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the FRNs or any other security and shall not constitute an offer, solicitation or sale in the United States or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.

The FRNs and the related guarantees have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Accordingly, the FRNs and the related guarantees were offered and sold in the United States only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States in accordance with Regulation S under the Securities Act.

This announcement contains certain forward-looking statements with respect to certain of Arrow's current expectations and projections about future events. These statements, which sometimes use words such as "intend," "proposed," "plan," "expect," "target" and words of similar meaning, reflect the directors' beliefs and expectations and involve a number of risks, uncertainties and assumptions (including the completion of the transactions described in this announcement) that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. Statements contained in this announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The information contained in this announcement is subject to change without notice and, except as required by applicable law, Arrow does not assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained in it. Readers should not place undue reliance on forward-looking statements, which speak only as at the date of this announcement. No statement in this announcement is or is intended to be a profit forecast or profit estimate or to imply that the earnings or other measures of performance of Arrow for the current or future financial years will necessarily match or exceed the historical or published earnings or other measures of performance of Arrow.

Neither the content of Arrow's website nor any website accessible by hyperlinks on Arrow's website is incorporated in, or forms part of, this announcement.