Sema Lease - Latest Issue
We are pleased to announce the completion of a £1 million note issuance under the recently enlarged £35m Sema Lease UK Limited MTN programme.
LGB Capital Markets first established a £10m MTN programme for Sema Lease UK Limited (“Sema”) in 2014. The programme was subsequently increased to £25m in March 2016 and again more recently to £35m in April 2021 (click here to read more about the 2021 limit increase). The MTN programme has provided the Company with a vital source of diversified and flexible funding over the past 7 years. Funds raised as a result of this latest issue under the MTN programme will continue to be used to provide Sema with the capital required to opportunistically acquire new vehicles and meet the growing demand from its clients.
The recent relaxation of the majority of Covid-19 restrictions in the UK has seen the release of months of pent-up demand for many goods and services, not least in the automotive sector. At the same time, constraints over the supply of new vehicles caused by a global semiconductor shortage have caused the market for used vehicles in the UK to rise in recent months. This trend stands to benefit Sema, which due to its long-standing relationships with major UK manufacturers is still able to acquire new vehicles to replenish its fleet, while also seeing the value of its existing stock appreciate with the market.
This latest £1m note issue was oversubscribed, having drawn significant interest from LGB’s institutional and HNWI investor base who recognise Sema’s positive long-term prospects and appreciate the flexibility afforded by the three different note maturities offered under the programme. 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.
The process from the initial conversation with Sema regarding a new note issuance through to completion took three weeks and required minimal input from the management team.