Time Finance (previously 1pm plc) is an AIM quoted FCA accredited non-bank alternative finance provider to SMEs across the UK. It provides a range of finance products including asset (lease) finance, business loans, invoice finance and, on a broked-on basis only, vehicle finance. The group currently employs c.180 staff across 6 sites, lending over £130m to over 20,000 SMEs.
DIVERSIFICATION AND FLEXIBILITY KEY ATTRACTIONS FOR TIME FINANCE
LGB Capital Markets first established a £7.5 million MTN Programme for Time Finance in 2017 and the programme has provided the company with a vital source of diversified and flexible funding. Funds raised under the programme will continue to be used primarily to meet demand for loan finance from Time Finance's SME customer base, but will also provide them with flexibility to fund related products and acquisitions.
The MTN Programme provides Time Finance with a framework for regular note issuance under a set of common documents and collateral arrangements. The programme has the flexibility to issue notes with a range of maturities, repayment profiles and fixed interest rates. To date, 10 separate series of notes have been issued to a wide range of investors participating across both 3 and 4 year quarterly amortising notes.
Other key attractions of the MTN Programme for the company are that – unlike traditional block discounters – note issuance proceeds are received prior to the “blocking” of Time Finance's loan and lease agreements, and there are no non-utilisation or commitment fees on the unutilised portion of the programme.
LGB’S INVESTOR NETWORK LEVERAGED TO PROVIDE TIME FINANCE WITH INCREASED FUNDING CAPACITY
LGB Capital Markets has a substantial and growing investor base comprising institutional credit funds, wealth managers, family offices and LGB Investments, all of which invest under the terms of a company’s MTN Programme. This growing demand and liquidity to invest provided Time Finance with reassurance that expanding its programme to £25 million would continue to provide a flexible funding source for the foreseeable future.
LGB Capital Markets placed a first tranche of £3 million under the enlarged programmed with a European institutional credit fund which was identified as an active participation in the financial services sector. LGB Capital Markets was integral in negotiating the terms and rate for the investment, and a 3-year amortising note was agreed which matches the repayment profile of Time Finance's underlying loans and leases.
PROGRAMME EXPANSION COMPLETED WITHIN 4 WEEKS
The process to legally increase Time Finance's programme to £25 million took less than 4 weeks. Timing was crucial in order to coincide with their funding requirement as well as the specified deployment expectations of the European credit fund. LGB Capital Markets used its experience in establishing and increasing programmes to ensure that the process was as efficiently managed as possible. The increase was conditional on 75% of existing noteholders passing a resolution to accept the changes to the programme, as well as a full review of the existing legal documentation. LGB Capital Markets also took the opportunity to appoint an independent security trustee to provide investors with robust external input and oversight on any further amendments or actions required in relation to the programme.
The foregoing is marketing material and does not represent an investment recommendation.
£25mLGB Capital Markets arrange a £25 million MTN Programme for Time Finance (previously 1pm plc)
£3m£3 million issue under the increased Programme from a European credit fund
“I am delighted that the group has further strengthened its funding position by reaffirming and significantly expanding the MTN Programme. We now have sizeable funding facilities in place across all our divisions, affording comfort over our funding capabilities for the foreseeable future as well as providing a wide range of cash flow solutions to the UK SME market.James Roberts, CFO
Time Finance (previously 1pm plc)