Sema Lease - Limit Increase
LGB Capital Markets arranged a £35 million Medium Term Note (MTN) programme for Sema Lease UK Limited (Sema), the short-term vehicle leasing provider.
The original £10m MTN programme, first established by LGB in 2014, has now been increased to £35m. The enlarged programme will continue to provide Sema with the flexibility to issue notes with a range of maturities, repayment profiles and fixed interest rates. The funds raised will allow Sema to opportunistically acquire new cars on attractive terms from major vehicle manufacturers and lease them to businesses, daily rental companies and individuals on short term contracts.
The programme expansion, from £25m to £35m, represents the third increase in the MTN programme since it was established in 2014. Over this seven-year period, LGB has worked closely with Sema’s management team to ensure that appropriate funding has been in place, both as the business has grown and, more recently, during the pandemic when the Company reduced its fleet and exposure to daily rental companies given the reduction in demand during 2020. The flexibility of the MTN programme, which includes notes with staggered maturity profiles and no commitment fees on the undrawn element, meant Sema could efficiently repay notes upon vehicle disposals without incurring fees.
Looking forward, the MTN programme remains an important source of flexible funding for the business, and the recent increase in capacity will enable Sema to rejuvenate its fleet and meet the increasing demand for short term vehicle leases as the UK moves out of lockdown.
More information on our MTN programmes can be found here.