Rivers Leasing - Latest Issue June 2021
We are pleased to announce the completion of a £1.5 million note issuance under the £25 million Rivers Leasing Plc (“Rivers” or “the Company”) MTN programme.
Rivers is an award-winning alternative finance business based in London. The Company provides small-ticket leases and business loans and finances a wide range of assets and commercial equipment to UK SMEs operating in a variety of business sectors.
LGB Capital Markets first established a £6 million MTN programme for Rivers in 2014. The MTN programme was subsequently increased to £12 million in 2017 and again to £25 million in 2018. The MTN programme has proven to be an important source of funding for the Company over the past 7 years. Funds raised as a result of this latest issue under the MTN programme will be used to support Rivers in kickstarting its lending business as the Company resumes normal operations and emerges from the disruption caused by the Covid-19 pandemic.
Prior to the pandemic, Rivers was on track to have its most successful year on record. However, lockdown restrictions impacted many of Rivers’ borrowers, prompting Management to react by suspending lending and divert its focus towards working with its customers to manage arrears and restore cash flow. This was successful and allowed the Company to recommence lending in a controlled way and in line with the improved economic outlook in recent months.
LGB’s investor base recognises the prudent risk management and strong leadership ability demonstrated by Rivers over the past 18 months. As such, this latest issue was oversubscribed, with the book closing on the £1.5 million financing just two days after launch. The MTN programme is monitored on an ongoing basis by the LGB Capital Markets team to audit covenant compliance and verify the performance of the business.