2020

Year

Refinancing

Transaction Type

Financial Services

Sector

Morses Club PLC

Client

Various

Lenders

Morses Club Plc

finnCap Group’s Debt Advisory Team is pleased to announce that it has advised Morses Club PLC (“Morses Club” or “the Group”) on securing an extension of its revolving credit facility (the “RCF”) with its existing funding syndicate until the end of November 2021.

Morses Club, an established provider of non-standard financial services, has agreed a reduction in the level of the facility from £50 million to £40 million to better reflect the requirements of the business over the next 18 months as it anticipates some deleveraging of the business driven by decreased sales volumes due to COVID-19. In the last year this additional £10m headroom has not been used. Facility levels that better reflect the near term needs of the business are expected to reduce funding costs, with the Group’s higher interest rate mezzanine debt facility now fully repaid and lower non-utilisation costs on the RCF facility expected.

Paul Smith, Chief Executive Officer of Morses Club, commented:

“I am delighted that we have secured a new loan facility and that our three existing funders continue to support the business during this challenging period, demonstrating their confidence in Morses Club and our growth and digital diversification strategy. The new loan facility provides us with sufficient funding to meet our requirements including expanding our product offering as we address the evolving needs of our customers.”

Alistair Hay, Partner and Head of Debt Advisory at finnCap, commented:

“The successful refinancing of Morses Club’s existing debt facilities is a testament to the strength of the underlying business model against a backdrop of increasing market uncertainty. The new facility is right-sized for the needs of the business, simplifies the debt structure, lowers the Group’s cost of capital and provides a robust platform for the Group going forward. In the current climate, it is also encouraging that existing lenders are engaging with and supporting their clients with their financing needs.”

Key Contacts

Alistair Hay

Partner & Head of Debt Advisory

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Graham Cooke

Partner, Debt Advisory

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Krishan Raval

Associate, Debt Advisory

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