Distrib. Fin. Regulatory News (DFCH)

Distribution Finance Capital Holdings plc

("DFC Holdings" or together with its subsidiary "Distribution Finance Capital Ltd", "DFC" or the "Company")

DFC agrees £40.3m facility supporting continued growth with funds affiliated with Ares Management Corporation ("Ares")

As outlined in DFC's admission document, the Company was in advance discussions with a debt provider to provide a revolving mezzanine credit facility to support further growth. The Company is now pleased to announce it has signed a £40.3m facility with Ares, which, in conjunction with its Citibank ("Citi") relationship, provides the business with the required liquidity to continue to grow in line with plan as it transitions to a deposit funding model and to address opportunities to scale in the future. Alongside the existing facility with Citi, the agreement of this facility with Ares, which extends to December 2020, will result in a blended group wholesale funding margin of 5.2% over LIBOR. 

Christopher Dailey, Chief Executive of DFC said:

"This facility with Ares, giving us greater flexibility in our funding options to address the wide opportunity set in front of us over the medium term has always been a key part of our strategy, and its completion is another important part in our evolution. We look forward to a long partnership with a supportive and innovative firm." 

Enquiries

Distribution Finance Capital Holdings plc +44 (0) 20 3937 6406

Chris Dailey, Chief Executive Officer

Gavin Morris, Chief Financial Officer

http://www.dfcapital-investors.com

Macquarie Capital (Europe) Limited (NOMAD and broker) +44 (0) 20 3037 2000

Alex Reynolds

Nicholas Harland

Jonny Allison

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 ("MAR"). The person responsible for arranging release of this information on behalf of the Company is Amelia Elson.

About Distribution Finance Capital Holdings plc:

DFC is a business lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains. In order to help businesses drive their growth, DFC's products allow them to match their cash cycle to the lending term, in turn allowing their customers (dealerships for example) to release the working capital tied up in their day to day operations.

As at 31 March 2019, DFC had signed 58 manufacturer programs, with 616 live dealers, typically SME's, who as DFC's primary customers take the lending facilities the manufacturer provides. The business has grown rapidly since it commenced lending in March 2017, with 274% loan book growth in 2018. £392 million of loans have been originated to date. In addition to the 58 signed manufacturers, 48 have agreed terms and the business has grown the loan book by in excess of 25% in the first quarter of 2019.