Amigo Loans confirms £275M high yield bond
Comment on Amigo Loans Bond
Amigo Loans today confirms that it has placed a £275M high yield bond with a 2024 maturity and an annual interest coupon of 7.625%. Part of the proceeds of the issue will be used to refinance existing debt.
J P Morgan Chase & Co led the transaction with Jefferies and RBS (trading as NatWest Markets) acting as joint book-runners.
Glen Crawford, CEO of Amigo, commented: "We are delighted to have completed our first bond issue. This is an important milestone for the business and a significant strategic step in the development of Amigo’s funding structure. It provides the business with long term sustainable funding more consistent with the average life of our loans. We are now in a position to help hundreds of thousands of additional customers meet their borrowing needs."
Rob Kienlen, Amigo’s FD, added: "The market reception for Amigo’s first bond was very pleasing, with a total order book in excess of £900M. It shows that investors really understand the unique service we provide to our customers, who are largely ignored by mainstream finance providers."
Amigo Loans is the market leader in guarantor loans within the U.K.’s non-standard finance sector with around an 85% market share. As of 30th September 2016, Amigo’s net loan book was £324M with in excess of 110,000 customers. Since 2005, Amigo has lent £1 Billion and more than 10,000 customers now take a loan from Amigo every month.
Amigo has a Trustpilot rating of 9.4 and is the highest in the sector, based on over 10,400 independent reviews.
