REG - Amigo Holdings PLC - Clarification on return to lending

Amigo HoldingsAnnouncement

18/01/2023 09:45

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RNS Number : 1184N  Amigo Holdings PLC  18 January 2023

18 January 2023

Amigo Holdings PLC

 

Clarification on return to lending

Amigo Holdings PLC ("Amigo" or "the Company"), a provider of mid-cost credit
in the UK, confirms that, as noted in the market update issued on 13 October
2023, the Company's Scheme of Arrangement ("Scheme") condition to return to
lending by 26 February 2023 was fulfilled with the initiation of the pilot
lending programme in October 2023.

Volume limits during the pilot phase

During the pilot lending period Amigo has agreed with the Financial Conduct
Authority ("FCA") certain volume limits. While demand from applicants has been
strong, the volume of completed loans has not met the minimum lending volume
that is needed to undertake meaningful outcomes testing. This has required the
Company to extend the lending pilot period, as described in the market update
issued on 16 January 2023.

Volume limits post pilot phase

It is expected that once the FCA is satisfied with the outcomes testing on the
pilot lending, the volume limits associated with the pilot will be removed.
However, under the terms of the Scheme, Amigo will remain limited to
cumulative net originations not exceeding a maximum of £35m, until it has
completed a further minimum £15m Scheme contribution from the proposed
capital raise, by no later than 26 May 2023. The limit of £35m is a
requirement of the Scheme and is not subject to FCA approval.

ENDS

Enquiries

 Company
 Amigo Holdings PLC          investors@amigo.me
 Kate Patrick                Head of Investor Relations
 Roger Bennett               Company Secretary

 Media enquiries              Amigoloans@lansons.com
 Tony Langham                  07979 692287
 Tom Baldock                 07860 101715

                           07783 387713
 Ed Hooper
 Peel Hunt LLP

                               020 7418 8900
 James Britton
 Oliver Jackson

Peel Hunt LLP

 

  020 7418 8900

James Britton

Oliver Jackson

About Amigo Loans

Amigo is a public limited company registered in England and Wales with
registered number 10024479. The Amigo Shares are listed on the Official List
of the London Stock Exchange. Since October 2022, Amigo has offered guarantor
loans and non-guarantor personal loans under its RewardRate brand. Both
products reward customers for on-time payments with an annual, interest-free,
payment holiday and the opportunity to reduce the effective APR, encouraging
better financial management and facilitating a long-term improvement of
customers' credit scores and financial mobility. Amigo has provided guarantor
loans in the UK from 2005, offering access to mid‐cost credit to those who
are unable to borrow from traditional lenders due to their credit histories.
The guarantor loan concept introduces a second individual to the lending
relationship, typically a family member or friend with a stronger credit
profile than the borrower. This individual acts as guarantor, undertaking to
make loan payments if the borrower does not. Amigo's back book of loans issued
pre-November 2020 is in the process of being run off with all net proceeds due
to creditors under a Court approved Scheme of Arrangement. Amigo Loans Ltd and
Amigo Management Services Ltd are authorised and regulated in the UK by the
Financial Conduct Authority.

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.

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.

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