LONDON (ShareCast) - (Sharecast News) - Amigo Holdings announced the completion of its inaugural securitisation facility of £150m on Tuesday, which it said was the first transaction of its kind in the guarantor loan space.
The FTSE 250 firm said the facility would be deployed to fund new customer originations, as Amigo continued to expand within the UK's non-standard finance market.

It said it would also be used to repay drawings under its existing revolving credit facility.

The facility, which has a minimum three-year term and would amortise thereafter, would have a funding rate around 500 basis points below the current cost of the company's senior secured notes and would, in time, lower Amigo's overall average cost of capital.

"This new funding line is another significant step forward for Amigo and an industry first for the guarantor loan sector," said chief executive officer Glen Crawford.

"The securitisation is in line with our stated intention to continue to diversify our funding sources and reflects the market's belief in the underlying quality of our business."

Amigo said the facility was provided by RBC Europe as sole lead arranger.

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