Credit lender NSF gets extension for £200m waiver facility

Credit lender Non-Standard Finance (NSF) has announced that the waiver on its £200m securitisation facility that was due to expire today has been extended to allow time for a more permanent solution to be reached.
NSFs chief executive, John van KuffelerNSFs chief executive, John van Kuffeler
NSFs chief executive, John van Kuffeler

Leeds-based NSF also said that preliminary discussions with a number of its larger shareholders regarding a possible equity issue have been positive and are ongoing.

The firm said discussions with its lenders are proceeding positively.

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It added that while further access to the facility is not required to finance its base case, the board is exploring alternative capital structures under which the facility could help to fund a more ambitious and profitable longer term growth plan.

Analyst Gary Greenwood at Shore Capital said: “It is important to note that, even without the issue of additional equity and an extension of the securitisation facility, the group remains viable in its base case macroeconomic scenario.”

Last week, NSF raised doubts about its ability to continue as a going concern, with the coronavirus crisis halting lending just after its failed attempt to buy rival Provident Financial.

NSF’s chief executive, John van Kuffeler, said: “The last 18 months have been difficult and disappointing for Non-Standard Finance with the failure of our offer for Provident Financial.”

Bradford-based Provident took a £24m hit after defending itself against the hostile takeover bid by NSF, which eventually failed.

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