UK's Non-Standard Finance drops on tentative deal with lenders

Non-Standard Finance

14/04/2023 12:34

** Shares of British consumer lender Non-Standard Finance  NSF.L  down more than 6.2% at
0.380 pence 
    ** Co agrees to provisional terms with its lenders to convert 71 mln pounds ($88.86 mln) of
secured debt into equity as part of a recapitalisation that would likely wipe out existing
shareholders
    ** "It is anticipated the lenders would hold approximately 20% of NSF's enlarged issued
share capital if the proposed capital raise is successful" - co
    ** Says indicative proposal from its lenders would substantially improve its balance sheet
following a successful capital raising
    ** NSF says without strengthening the balance sheet, the group would remain insolvent and
most likely go into administration
    ** Stock down ~21% YTD


($1 = 0.7990 pounds)

 (Reporting by Radhika Anilkumar in Bengaluru)
 ((Radhika.Anilkumar@thomsonreuters.com))