Amigo Holdings PLC (LON:AMGO) today announced the completion of its inaugural securitisation facility of £150m, the first transaction of its kind in the guarantor loan space.
The Facility will be deployed to fund new customer originations as Amigo continues to expand within the UK’s non-standard finance market. The Facility will also be used to repay drawings under the Company’s existing revolving credit facility.
The Facility, which has a minimum three-year term and amortises thereafter, will have a funding rate c. 500 bps below the current cost of the Company’s senior secured notes and will, in time, lower Amigo’s overall average cost of capital.
Glen Crawford, CEO of Amigo said:
“This new funding line is another significant step forward for Amigo and an industry first for the guarantor loan sector. The securitisation is in line with our stated intention to continue to diversify our funding sources and reflects the market’s belief in the underlying quality of our business.”