REG - Non-Standard Fin - Acquisition of George Banco, £225m term loan & RCF <Origin Href="QuoteRef">NSF.L</Origin>

Non-Standard FinanceAnnouncement

03/08/2017 07:09

RNS Number : 9662M
Non-Standard Finance PLC
03 August 2017
Non-Standard Finance plc
('NSF' or the 'Group')
3 August 2017
Acquisition of George Banco
225m new term loan facility
35m new revolving credit facility
Highlights
 
NSF has agreed to acquire George Banco for 53.5m in cash 
 
NSF is now the clear number two in the UK's fast growing guaranteed loans segment 
 
Together with TrustTwo, the Group had a combined guaranteed loan book of c.40m as at 30 June 2017, representing approximately 20% of the enlarged Group total
 
The acquisition is expected to be earnings enhancing in the first full year post-acquisition (2018)
 
In the 12 months to 31 May 2017, George Banco generated revenue of 9.3m and EBITDA of 4.1m
 
Acquisition and refinancing is via a new 225m six-year loan facility provided by institutional investors
 
Additional funding available via a new 35m revolving credit facility provided by RBS
NSF is pleased to announce that it has agreed to acquire George Banco Limited ('George Banco') from its existing shareholders for an enterprise value of 53.5m, payable in cash. Completion is expected in September 2017 and the acquisition is expected to be earnings enhancing in the first full year following completion.
Having launched in April 2014, George Banco has grown rapidly to become the number two player in the UK's growing guaranteed loans market, with a total net loan book of approximately 30m. As part of a larger Group, we believe there is scope to continue to develop the business further and to grow profits substantially. 
To finance the acquisition and refinance all of the Group's existing debt facilities, as well as to provide additional funding to support future growth, NSF has secured a new 175m term loan facility (the 'Term Loan'), provided by a group of institutional investors, led by Alcentra Limited. The new six-year loan bears an interest rate of LIBOR plus 725 basis points per year with interest payable every six months. The same investors have also agreed to provide an additional committed facility of up to 50m under the same terms as the Term Loan. In addition, the Group has also secured a new 35m revolving credit facility ('RCF') provided by Royal Bank of Scotland. 
Commenting on the acquisition and refinancing, John van Kuffeler, Group Chief Executive said:
"George Banco represents a transformative acquisition for the Group, putting NSF into the clear number two position in the fast-growth guaranteed loans segment. Complementing our existing TrustTwo brand, George Banco provides us with real scale and an opportunity to grow even faster.
"With leading positions in each of our chosen segments, we now have a stable, long-term funding platform from which we can finance our growth plans. We will continue to seek strategic opportunities in the UK's non-standard finance sector that meet our stringent criteria for growth and return on assets." 
- Ends -
For more information:
Non-Standard Finance plc
John van Kuffeler, Group Chief Executive
Nick Teunon, Chief Financial Officer and Company Secretary
Peter Reynolds, Director, IR and Communications
+44 (0) 20 3869 9026
Bell Pottinger
Jonathan Hodgkinson
Aarti Iyer
Molly Stewart
+44 (0) 20 3772 2500
Interviews with John van Kuffeler, Chairman and Nick Teunon, Chief Financial Officer
Interviews with John van Kuffeler and Nick Teunon will be available as video and text from 7.00 am on 3 August 2017 on the Group's website: www.nonstandardfinance.com.
Analyst meeting, webcast, dial-in and conference call details
There will be an analyst meeting at 9.00 am on 3 August 2017 for invited UK-based analysts at the offices of JP Morgan, 60 Victoria Embankment, London, EC4Y 0JP (the entrance is in John Carpenter Street). The meeting will be simultaneously broadcast via webcast and conference call. To watch the live webcast, please register for access by visiting the Group's website www.nonstandardfinance.com. Details for the dial-in facility are given below. A copy of the webcast and slide presentation given at the meeting will be available on the Group's website later today.
Dial-in details to listen to the analyst presentation at 9.00 am, 3 August 2017
08.50 am
Please call +44 (0)330 336 9411
Access code
8462263
9.00 am
Meeting starts
All times are British Summer Time (BST).

This information is provided by RNS
The company news service from the London Stock Exchange
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