Our main activity within LGB Capital Markets is the structuring and arranging of medium term note (MTN) programmes for UK growth companies. MTN programmes are capital markets instruments – the structure of which LGB has taken from the larger institutional markets – which bring private credit investors into secured SME and mid-market lending transactions.
If you are looking for financing, please get in touch here.
Secured MTN Programmes
MTN programmes allow our corporate clients to raise flexible, medium term debt financing from multiple private investors, with the freedom to issue notes with different maturities and interest rates to match a company’s funding requirements.
For companies, MTN programmes create a diversified investor base and reduced reliance on a single lender, as well as flexibility in pricing, drawdown, repayment and terms.
We have established programmes for 24 companies across a range of sectors, creating note issuance capacity of £250 million.
To read about our recent transactions, click here.
Financing the gap in the SME space
Banks are constrained in their lending to SMEs by regulatory capital pressures and the need to reduce operating expenses. There are a lack of products with robust security and inter-creditor arrangements.
Although investors have demand for the investment risk within this gap, there are few properly structured investment mechanisms through which investors can access it.
MTN programmes replace or supplement senior bank facilities and provide an institutional-quality structure for accessing this level of the capital structure within SMEs.
Attractions for Issuers & Investors
£170mNote issuance completed
£250mProgramme capacity of £250 million established
6-10%Typical range of interest rates
The LGB & Co. team provided a responsive, quick and knowledgeable service. Coupled with a deep and broad investor base, this allowed us to complete our inaugural transaction on time and budget. I very much look forward to working with them in the future.STEFAN WOLVAARDT
CHIEF FINANCIAL OFFICER OF SIMPLY ASSET FINANCE