Sancus proposes capital injection to strengthen financial position

Sancus has told shareholders of plans to refinance and extend the final capital repayment of its ZDP Shares to 5 December 2027. As well as a tender offer of up to 15 per cent of the ZDP Shares in issue, excluding those held in treasury.

The lender also alerted investors to an in-principle agreement for an increase in the company’s existing facility with Pollen Street to £125 million and a term extension for at least three years, expanding the group’s access to strategic institutional long-term financing.

At the same time, the group has proposed Somerston Group, the company’s largest ordinary shareholder, subscribe for additional new bonds and warrants by Somerston Fintech, providing the group with additional growth capital at a “critical juncture in its turnaround plan”.

‘Continuing to execute on growth plans’

Rory Mepham (pictured), chief executive of Sancus, said: “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.

“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.”

At the end of last month, Specialist Lending Solutions reported that Sancus’ new loan facilities in the first-half of the year increased by 62 per cent year-on-year to £86m.