Supply @ME Capital PLC Inventory Funding: Securitisation Issue Update (7416D)
30 October 2020 - 6:00PM
UK Regulatory
TIDMSYME
RNS Number : 7416D
Supply @ME Capital PLC
30 October 2020
30 October 2020
Supply@ME Capital plc
(The "Company", "Supply@Me" or "SYME")
Inventory funding: Securitisation Programme key update
Supply@ME Capital plc, the innovative fintech platform which
provides a unique, market leading Inventory Monetisation (c)
service to European manufacturing and trading companies, is pleased
to provide the following update regarding its Inventory-backed
Securitised Note Issue programme.
The Company announced on 10 September 2020 that it was analysing
whether to syndicate its first securitisation note across a number
of investors, or work on an exclusive basis with one investment
fund. Following detailed evaluation, SYME confirms that it has
agreed to partner on an exclusive basis with a global investment
fund (the "Investor") whose intention is to subscribe for the whole
of the first issuance and become an ongoing partner of the Company.
Whilst this decision has put back slightly the date of completion
of the first issuance, the opportunity to form an ongoing
partnership with the Investor will provide valuable benefits to
SYME, both in the short and long-term.
Supply@ME is also pleased to confirm that the Client Companies
included in the first Inventory Monetisation transaction are now
fully on-boarded and that the Platform continues to originate
further corporate clients through its strong network of local
partners and intermediaries.
The decision to work with a single funder for the first
securitisation transaction is based on the following.
1. International large volume investor in credit opportunities
The Investor is a leading global alternative investment fund
manager, founded in the 1980s, with a globally diversified
investment portfolio valued at more than $70 billion.
It has an extensive track-record of structuring, optimizing and
executing capital markets solutions across many asset classes, as
well as in the development and growth of various forms of lending
businesses.
2. Ongoing partnership
The Investor intends to form an ongoing partnership with
Supply@ME. Its objective is to support the growth of the inventory
monetisation business to achieve a significant critical mass of
inventory assets held, combined with a funding track-record, such
that it can explore other sources of finance at lower cost for
future SYME securitisation note issues.
The Investor is also evaluating the acquisition of a minority
equity participation in SYME.
As announced on 28 September, this first portfolio Inventory
Monetisation is expected to have a value of approximately EUR300m
and deliver approximately GBP20.5m of annual revenue into its
securitisation vehicles. This is expected to generate average
annual net servicing fees of GBP6.5m for Supply@ME.
Final negotiations, operating and regulatory tasks are
proceeding well. The objective is to complete the first transaction
in the coming weeks together with a scalable funding agreement that
enables the Investor to increase its investment and monetise
additional Client Companies that are in the pipeline.
In accordance with confidentiality agreements signed by each of
the parties, a further regulatory announcement on completion will
include details of the Investor.
Notes
Supply@ME enables businesses to generate cashflow, without
incurring debt, by monetising their existing stock. Before a
business has found an end-customer for its inventory, the Supply@ME
platform enables them to sell ("monetise") their stock and receive
cash immediately to boost their working capital. The Supply@ME
service enables strong companies to improve their working capital
cycle. SYME does not monetise inventory for companies in financial
difficulty or with inventory that they are struggling to sell.
Contacts
Alessandro Zamboni, CEO, Supply@ME Capital plc,
investors@supplymecapital.com
Paul Vann, Walbrook PR Limited, +44 (0)20 7933 8780
Brian Norris, Cicero/AMO, +44 (0)20 7947 5317
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