Lantern Group secures enhanced funding facilities

Debt purchase and credit management specialist Lantern Group has announced that it has secured an enhanced funding facility with its lending partners.

The new £135 million facility, which increases the Group’s borrowing capacity and extends maturity, will support Lantern’s strategic growth plan and reinforce its competitive position. The Debt & Capital Advisory team at Interpath advised Lantern on the funding package, which is made up of an initial commitment of £100 million and an accordion of £35 million.

Lantern Group is a collective made up of Lantern Debt Recovery, Sonex Financial and Ascent Performance, delivering ethical, data-led debt purchase and BPO services to banking, utilities, motor finance and fintech clients across the UK. The revolving credit facility has been secured on improved terms with senior funders Hampshire Trust Bank, Paragon Bank, and Shawbrook, alongside a mezzanine finance facility provided by BCI Capital. The transaction underscores lender confidence in the Group’s robust operating performance and experienced leadership team.

Paul Mason, Chief Executive Officer of Lantern Group. said “Our business is built on strong financial foundations and an unwavering commitment to doing the right thing for customers, clients and funders.

“This enhanced facility demonstrates the confidence of our lending partners in our model and provides the firepower we need to continue scaling responsibly.  It enables us to compete for larger and more complex portfolios, support our clients with certainty and invest in the next phase of our market expansion.”

Andrew Kirk, Chief Financial Officer of Lantern Group, said “We are pleased to have secured a scalable facility that not only increases our funding capacity but also improves our cost of capital, demonstrating our financial strength as a business. The strong demand from lenders is a testament to the resilience of our business and our track record of delivering stable returns.  By optimising our capital structure, we are well positioned to execute our growth strategy and deliver value for all stakeholders.”

The team from Interpath’s Debt & Capital Advisory practice that advised Lantern on the funding package was led by Nick Parkhouse and Jack Dutton, with support from Katie Richards, Sophie Humphreys, and Cameron Brown.

Jack Dutton, Director at Interpath, said “We’ve worked closely with the team at Lantern to proactively secure a more flexible funding package that further enhances the financial platform that will deliver its growth strategy. The deal reflects confidence in Lantern Group’s proposition and ambitions for the future in terms of organic and acquisitive growth.”