Extension of Existing Bank Facilities

Non-Standard Finance plc ('NSF')

('Non-Standard Finance' or the 'Group')

Extension of existing bank facilities

17 March 2017

The Group is pleased to announce that under the terms of its existing £85m facility with Royal Bank of Scotland, Shawbrook Bank and Secure Trust Bank (the 'Lending Banks'), it has secured agreement to exercise the £20m accordion for Everyday Loans, increasing the size of the facility to £105m. The accordion funding has been provided by Royal Bank of Scotland. At the same time, the Group has also amended the terms of the facility as follows:

· A new £20m accordion is now in place, so that, if exercised with the consent of the Lending Banks, the total facility would increase to £125m;

· The advance rate on performing loans has been increased from 65% previously to 70%, thereby enabling Everyday Loans to increase its borrowing against its performing loan book (at 31 December 2016 the loan book was £122.4m (before fair value adjustments)); and

· The amended facility has been extended from December 2018 to March 2020.

All other terms of the facility remain unchanged.

Commenting on today's announcement, Nick Teunon, Chief Financial Officer said:

"With committed funding now totalling £115m and an option to increase this to £140m, with the consent of our lending banks, the Group is well-funded to deliver our growth plans over the next few years."

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About Non-Standard Finance

Non-Standard Finance plc was established to acquire and grow businesses in the UK's non-standard consumer finance sector. Under the direction of its highly experienced main board, the Company has now established a sustainable group of businesses offering credit to the c.12 million UK adults who are not served by mainstream financial institutions. In addition, the businesses acquired now have access to increased levels of funding and have benefited from stronger management controls with more rigorous credit standards; have refined their product pricing in a number of areas; have introduced new compliance protocols; and are investing in new IT infrastructure and systems. These changes have been implemented to balance the delivery of improved customer outcomes with the delivery of substantial returns for shareholders. 

The Company announced on 7 July 2015 that it had entered into an agreement to acquire the Home Credit Division of S&U plc ('S&U') which trades as Loans at Home, for an enterprise value of £82.5m, payable in cash, subject to approval by S&U's shareholders and customary closing conditions. The acquisition completed on 4 August 2015 following approval by S&U's shareholders with the final consideration equalling £82.4m after an adjustment for net assets at completion.

On 4 December 2015 the Company announced that it had entered into an agreement to acquire Everyday Loans, the branch-based unsecured lending and guaranteed loans business of Secure Trust Bank PLC, for an enterprise value of £235m. The acquisition, that was funded through a combination of new equity and debt facilities completed on 13 April 2016, following change of control approval from the FCA.

In the year ended 31 December 2015, the Group's businesses generated pro forma revenue of approximately £80m and pro forma adjusted profit before tax of approximately £16m. As at 31 December 2015 the Group's businesses had a combined loan book of approximately £143m. 

Each of the Group's operating subsidiaries is regulated by the FCA.