REG - Amigo Holdings PLC - AGM Statement

Amigo HoldingsAnnouncement

28/09/2022 07:00

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RNS Number : 9107A  Amigo Holdings PLC  28 September 2022

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FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE
 
    28 September 2022

 

Amigo Holdings PLC

("Amigo" or the "Company")

 

AGM Statement

 

Amigo, a provider of mid-cost credit in the UK, will hold its Annual General
Meeting today. At the meeting the following statement will be made:

 

"The Company continues to perform in line with expectations with collections
resilient despite the heightened inflationary environment. Under the terms of
the Scheme of Arrangement sanctioned in May 2022 ("the Scheme"), Amigo is
required to deliver an initial Scheme contribution of £97 million. Amigo,
based on current projections, expects to meet the initial Scheme contribution.
In the event that total net recoveries from the back book result in an amount
greater than the £97m initial Scheme contribution, the excess will be paid to
the Scheme fund. Cash remains strong with current unrestricted cash of
c.£125m. The Board's focus remains on meeting the conditions agreed within
the Scheme, including a capital raise to be completed by 26 May 2023.

"The Board expects to propose a capital raise of approximately £40m, which
will include the 19:1 ordinary share issue mandated by the Scheme ("the
Capital Raise"). In addition, Amigo will raise debt to support future growth.
The Company will seek to facilitate meaningful participation by its existing
shareholders on a pre-emptive basis, underwritten by one or more institutional
investors whom it expects to account for the majority of the Capital Raise.
The structure remains under consideration and, due to its complexity and the
uncertainties of the market, Amigo reserves the right to make appropriate
amendments to the size and terms of the Capital Raise. As a precursor to
enabling a successful Capital Raise, work is continuing to reach a settlement
of the FCA's Enforcement investigations into affordability and complaints
handling.

 

"Another condition of the Scheme is that Amigo returns to lending by 26
February 2023. The FCA has yet to approve our return to lending, however
following a long period of review and discussion, we are finalising details
with regards our proposals to commence a lending pilot. During the pilot, we
will be undertaking significant testing to ensure that we are lending
affordably. We continue to discuss our approach and implementation with the
FCA to achieve these goals as soon as possible.

 

"As previously announced, we have developed a new lending proposition, under
the RewardRate brand, which is designed to meet strong demand in the market
for competitively priced, mid-cost, specialist credit products. As well as
designing the new product set, we have invested in new technology and
undergone a cultural reset. Amigo now has the right values and operational
processes in place, and we are confident the mistakes of the past will not be
repeated."

Access to the AGM

Amigo Holdings PLC will be holding the Company's Annual General Meeting today
at the Bournemouth Highcliff Marriott Hotel, 105 St Michael's Road,
Bournemouth BH2 5DU at 10.00am. A live webcast will also be available via Zoom
using:

Join Zoom Meeting

https://us02web.zoom.us/j/86038825269?pwd=MWNabGpDbk16cndCNEg3Z2NaNGk3QT09
(https://us02web.zoom.us/j/86038825269?pwd=MWNabGpDbk16cndCNEg3Z2NaNGk3QT09)

 

Meeting ID: 860 3882 5269

Passcode: 776585

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014. The person responsible for this
announcement is Roger Bennett, Company Secretary.

 

Contacts

 

Amigo Holdings PLC       investors@amigo.me

Kate Patrick                      Head of Investor Relations
 

Roger Bennett                 Company Secretary

 

Media enquiries              Amigoloans@lansons.com

Tom Baldock                     07860 101715

 

Peel Hunt LLP                   020 7418 8900

Andrew Buchanan

Oliver Jackson

Sam Milford

 

Additional information

This announcement is not intended to, and does not, constitute or form part of
any offer, invitation or the solicitation of an offer to purchase, otherwise
acquire, subscribe for, sell or otherwise dispose of, any securities, or the
solicitation of any vote or approval in any jurisdiction, pursuant to this
announcement or otherwise.

Senior Secured Notes

This announcement constitutes notice by Amigo Luxembourg S.A. (the "Issuer")
to the holders of the Issuer's 7.625% Senior Secured Notes due 2024 (for the
notes issued pursuant to Rule 144A of the United States Securities Act of
1933, ISIN: XS1533928468 and Common Code: 153392846; for the notes issued
pursuant to Regulation S of the United States Securities Act of 1933, ISIN:
XS1533928625 and Common Code: 153392862) (the "Notes") issued pursuant to
pursuant to Section 4.03(a)(3) of an indenture dated January 20, 2017 among,
inter alia, the Issuer, the guarantors named therein and U.S. Bank Trustees
Limited, as trustee and security agent.  Amigo Holdings PLC is the indirect
parent company of the Issuer. This announcement shall constitute a "Report" to
holders of the Notes.

-ENDS-

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