Shares in Non-Standard Finance (AIM:NSF) jumped 20% on Wednesday morning after the group repaid £15m of a £200m securitisation facility.
As a result of the repayment, the breach of certain performance triggers that arose as a direct result of COVID-19 has now been waived, NSF explained to investors this morning.
NSF has now agreed with the provider that, subject to their consent and the satisfaction of standard covenants for a facility of this type, the facility will remain open for future use.
Shares in Non-Standard Finance jumped 20% to 7.20p in late trading on Wednesday afternoon following the announcement.
The UK-based consumer finance company secured the six-year £200m facility back in March to fund continued loan book growth for NSF’s branch-based and guarantor loans divisions.
This is provided by credit funds managed by Ares Management Corporation (NYSE: ARES).
Nick Teunon, NSF's CFO previously described the facility as “an important milestone” which would allow for the diversification of funding sources while signalling “a clear recognition of the quality and confidence in the Group's two largest and fastest-growing businesses."
At the end of July 2020 and prior to the repayment, NSF had total cash balances of £79.8m and gross borrowings of £345.0m.
The Group said cash balances will be reduced by a further £8.1m in August when one of NSF’s regular biannual interest payments is made on the Group's £285m term loan facility.
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