1PM PLC Increased and Improved Funding Facilities (6587U)
November 26 2019 - 2:02AM
UK Regulatory
TIDMOPM
RNS Number : 6587U
1PM PLC
26 November 2019
26 November 2019
1pm plc
(the "Group" or the "Company")
LOAN DIVISION SECURES INCREASED AND IMPROVED FUNDING
FACILITIES
PROVIDING SIGNIFICANT FURTHER HEADROOM FOR GROWTH
-- Medium Term Note Programme increased to up to GBP25m
-- GBP5m of new and improved facilities with existing debt providers
-- All funding 'matched' over the borrowing and lending term
1pm plc, the AIM listed independent specialist finance provider,
is pleased to announce that it has secured new and extended
facilities to provide further funding for UK SMEs. The new
facilities are primarily for the Group's Loans division with an
increase in the current GBP7.5m Secured Medium Term Note Programme
(the "MTN Programme") to up to GBP25m. In addition, a further GBP5m
of funding specifically for the Group's Loans business has been
established with some of the Group's long-standing funders.
First established in 2017 through LGB Corporate Finance ("LGB"),
the MTN Programme offers loan notes to institutional, wealth
management and private investors. The MTN Programme will continue
to provide the Group with the flexibility to issue notes with a
range of maturities, repayment profiles and fixed interest rates.
The first issue of notes under the new and increased MTN Programme,
amounting to GBP3m, has been placed with an institutional debt
facility provider. The funds raised will continue to be used
primarily to meet demand for loan finance from the Group's SME
customer base but will also provide the Group flexibility to fund
related products and acquisitions.
Alongside the increase in the MTN Programme, the Group has
recently negotiated increased Block Discounting facilities
totalling GBP5m with a number of existing funding partners. This
additional debt funding will be used exclusively for the purpose of
writing new business in the financing of loans to UK SMEs, offering
improved flexibility.
As with all of the Group's existing leased asset and loan
funding, these new borrowing facilities are 'matched' with the term
of the lending facilities the Group provides to UK SMEs. As such,
the funding simply amortises over the length of the Group's lease
or loan term, which is typically three years. This matching policy
is a key element of the Group's risk management and governance.
The Group continues to experience robust demand for finance.
This includes loan funding which will be provided through these new
and extended facilities. The deployment of these facilities will
enable the loans division to increase the amount and to diversify
the range of lending for business-critical loans used by SME
businesses whilst resolutely maintaining its strict underwriting
criteria.
James Roberts, Chief Financial Officer, commented:
"I am delighted that the Group has further strengthened its
relationships with a number of key Block Discounting funding
partners as well as reaffirming and significantly expanding the MTN
Programme. We now have sizeable funding facilities in place across
all our divisions, affording comfort over our funding capabilities
for the foreseeable future as well as providing a wide range of
cash flow solutions to the UK SME market.
In 2018 we announced our GBP35m partnership with the British
Business Bank to fund our hard asset leasing business; in March of
this year we announced our extended and consolidated GBP37m
facility with Natwest to help grow our invoice finance businesses,
and now we are delighted to be able to announce our combined GBP30m
of funding facilities for our loans division.
Given the wider macro-economic uncertainty, our partners' desire
to support and work with us and to provide larger and more flexible
facilities is extremely pleasing and reflective of the Group's
reputation within the industry as an ambitious and growing
business."
The information contained within this announcement is deemed by
the Group to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
For further information, please contact:
1pm plc
Ian Smith, Chief Executive Officer 01225 474230
James Roberts, Chief Financial Officer 01225 474230
Cenkos (NOMAD)
Max Hartley / Ben Jeynes (NOMAD) 0207 397 8900
Julian Morse (Sales)
Walbrook PR 0207 933 8780
Paul Vann 07768 807631
About 1pm:
1pm's strategy is to focus on providing or arranging the finance
UK SMEs require to fund their businesses and arranging vehicle and
property-backed finance for consumers. The multi-product range for
SMEs includes asset, vehicle, loan and invoice finance facilities.
The Group operates a "hybrid" lending and broking model enabling it
to optimize business levels through market and economic cycles.
More information is available on the Company website
www.1pm.co.uk
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END
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