Sancus proposes refinancing to support growth plans
Property bridging and development lender Sancus has confirmed proposals for a refinancing of the group’s ZDP Shares, including a 15 per cent tender offer.
This is alongside a proposed extension of the group’s existing funding facility with Pollen Street Capital and an injection of capital by the group’s largest existing ordinary shareholder, Somerston.
A trading update in July suggested there had been discussions with some ZDP shareholders on its long-term finance strategy, including a potential refinancing, and a part repayment or extension of the ZDPs, which have a maturity date of 5 December 2022.
The latest proposal is to refinance and extend the final capital repayment of the ZDP shares to 5 December 2027, and a tender offer of up to 15 per cent of the ZDP shares in issue, excluding those held in treasury.
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There has also been an in-principle agreement for an increase in the company’s existing facility with Pollen Street to £125m for an extended term of at least three years, expanding the group’s access to strategic institutional long-term financing.
The firm’s main investor, Somerston Fintech, will also provide the group with additional growth capital at what it described as “a critical juncture in its turnaround plan”.
“The proposed refinancing, tender offer, extension of the group’s existing facility and capital injection strengthens the group’s financial position and will enable the group to continue to execute its growth plans”, Rory Mepham, chief executive officer of Sancus Lending Group, said.
“The extension of the Pollen Street facility for three years allows further growth in our loans under management. I would like to thank our ZDP holders and Somerston Group for their continued support as we continue to execute our turnaround and focus on growth.”
Aim-listed Sancus Lending Group rebranded from GLI Finance in May 2021, citing an increased focus on the alternative property finance sector as the reason for the change.
At a similar time, shareholders voted in favour of a restructuring of the business, which included the refinancing of existing bonds and a £4m equity fundraise.
Meanwhile, Sancus has appointed Joshua Eyre as managing director of its offshore business, including Jersey, Guernsey and Gibraltar.
Eyre, who is based in Jersey, has 20 years’ experience in finance, including mortgages and banking for a combination of retail, intermediary and family office clients.
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