Credit provider provisionally agrees rescue plan with lenders

Credit provider, Non-Standard Finance (NSF) has provisionally agreed on a deal with its lenders which it hopes will underpin rescue efforts to save the group.

Its secured lenders have provisionally agreed to release £71 million of secured debt in exchange for 20% of the company.

NSF plans to raise £95 million through a share placing that will effectively wipe out existing shareholders.

The group warned that if the fundraising fails, its remaining options would be to pursue an alternative transaction that would see the lenders take control or enter administration – both scenarios resulting in no return for shareholders.

NSF’s lenders have agreed to extend its secured debt facilities by four years, to June 2027, with a reduced fixed interest rate of 5%. NSF’s Loans at Home division entered administration a year ago, and now just operates through its branch-based lending brand Everyday Loans.

NSF has also announced today that non-executive Chair Charles Gregson will stand down at the company’s AGM and be replaced by former Cooperative Bank Chief Executive Niall Booker.

NSF said in a statement “The board welcomes the indicative proposal from its lenders which would substantially improve the company’s balance sheet following a successful capital raise, underpinning the prospects for strong growth in NSF’s ongoing branch-branched lending business and a return to group profitability.”