Non Standard Finance (NSF) has entered into a new, six-year securitisation facility provided by credit funds managed by Ares Management Corporation (NYSE: ARES) totalling £200m (the 'New Facility').
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."
The new facility will enable NSF to continue its loan book growth, through it fast-growth branch-based and guarantor loans divisions, and used to repay a proportion of the current outstanding debt under the Company's existing drawn credit facilities.
Furthermore, the pricing of the new Facility is more favourable than existing debt facilities and is expected to result in a Pre-Tax saving of approximately £1m for the 12 month period to 31 December 2020. 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).
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."
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