Payday lender NSF secures £200m loan facility
Payday lender Non-Standard Finance has secured a new £200m loan facility.
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The Leeds-based company - which last year launched a failed £1.3bn bid for rival Provident Financial - said it had entered the six-year securitisation facility at pricing "that is more favourable" than its existing facility. As result, it would generate a pre-tax saving of around £1m.
The money will be used to fund continued loan book growth, as well as repay a proportion of outstanding debt under the company’s existing draw credit facilities.
Nick Teunon, outgoing chief financial officer, said: "This new source of funding is an important milestone. Not only will the securitisation allow us to further diversify our funding sources, it also signals a clear recognition of the quality and confidence in the group’s largest and fastest-growing businesses."
As at 1415 GMT, shares in NSF were trading 4% lower at 20.88p.
Last November, NSF - which owns the George Banco, Everyday Loans and Loans at Home brands - warned on profits. It said the third quarter had been "softer than expected" and warned that the UK economic outlook was now "more uncertain than at any point in the last 10 years".