LGB Capital Markets worked with Rivers Leasing on a debt advisory basis with a view to meeting the company’s objectives of driving growth and expansion of the business post-Covid and establishing the most appropriate capital structure to achieve the company’s growth ambitions. A flexible funding package was secured by Conister Bank comprising revolving credit facilities across two lending vehicles, in addition to a CBILS loan and term facility. Conister also took a minority equity position in the group, in addition to warrants exercisable under certain conditions, with a view to providing additional facilities and creating a long-term partnership with the group.

Rivers Leasing plc

RIVERS AND LGB - BACKGROUND AND HISTORY

Rivers Leasing is an SME-focused alternative finance business based in London. The business was established in 2010 and provides small-ticket asset leasing and business loans to UK SMEs operating in a variety of sectors. The group has grown into an award-winning industry player and in 2020 was recognised by the Financial Times for the fourth year running as one of Europe’s fastest-growing companies.

The partnership between Rivers and LGB has been ongoing since 2014 when LGB first arranged a £6m MTN programme to help Rivers grow its loan book and expand the business. The programme has subsequently been increased twice - to £12m in 2017 and to £25m in 2018 - highlighting Rivers’ strong expansion and the importance of the programme in the company’s growth. Rivers and LGB have built a strong relationship and deep understanding of each other’s businesses, which meant LGB was uniquely placed to advise Rivers on securing a new finance package to supplement the MTN programme and other funding lines.

LGB’S INSIGHT AND EXPERTISE POSITIONED RIVERS TO SECURE THE MOST APPROPRIATE FUNDING SOLUTION

The production of high-quality lender materials and clear articulation of the business plan in a post-Covid environment helped drive lender interest and accelerated credit approvals. LGB’s detailed knowledge of institutional debt products, equity fundraising and underlying legal documentation facilitated comprehensive advice to the company and resulted in Rivers securing the most appropriate funding solution on attractive terms. The composed coordination of the documentation and execution stages – liaising closely with the company, bank and both sets of lawyers – supported a smooth closing of the transaction.

Key facts

£6.25m

LGB Capital Markets secured Conister Bank as the funder for a growth facility.

£60m

Rivers has provided at least £60m of finance to SMEs on over 3,400 agreements.

The support, service and advice that we received from LGB Capital Markets in finding the most appropriate capital structure and funding partner for Rivers Leasing’s growth ambitions post pandemic, have been instrumental. The team have been highly engaged with us throughout and have provided sound, strategic and insightful guidance resulting in not just a positive outcome, but the right one for the culture, plans and mindset of the company

Ratan Daryani
Managing Director of Rivers Leasing