118 118 Money completes a significant debt funding to support its mission to provide affordable personalised financial solutions through its growing consumer loans and credit cards businesses
118 118 Money announces the successful completion of a significant refinancing which included two private securitisations and one corporate asset backed facility, providing total funding up to £580m.
All three facilities will support the continued growth of 118 118 Money as part of their strategy to provide better financial options today, so customers can build a better future for tomorrow. The new facilities included a consumer loans facility and a credit cards facility which are supported by the investment banking arm of a UK bank, funds managed by Castlelake, L.P.; a global alternative investment firm, and Pollen Street Capital; an independent alternative investment management company.
CEO Designate of 118 118 Money, David Goodman, welcomed the announcement of the deal saying:
“Since inception, 118 118 Money has provided personal consumer loans to over 400,000 UK customers and has issued over 190,000 credit cards. This additional funding will support 118 118 Money’s mission of providing finance to the underserved near-prime consumer credit market and help these consumers to improve their everyday lives. 118 118 Money is delighted to enhance its relationship with Pollen Street Capital and begin its relationship with the two new funding partners.”
Commenting on the transaction, Nick Parkhouse, Partner in the EY Financial Services Corporate Finance team, said:
“It was a privilege to support 118 118 Money on this important capital raise. The company is now well positioned to deliver on its financial and corporate objectives through these significant new facilities and we look forward to continue supporting them.”
Eduardo D’Alessandro, Partner & Co-head of Investment Teams, Europe at Castlelake L.P. said:
“We are excited to partner with 118 118 Money by providing financing that enables the company to continue growing and delivering on its mission to provide differentiated credit-building solutions for underbanked consumers.”
Michael Katramados, Partner at Pollen Street, said:
“We are very pleased to build on our partnership with 118 118 Money, supporting the business as it continues to grow. This new facility enables 118 118 Money to expand its consumer loans business, helping individuals across the UK gain access to personalised financial solutions alongside building their credit score.”
EY was appointed as sole financial advisor to 118 118 Money. The EY engagement team comprised of Nick Parkhouse, Taylor Gwilliam, Arihant Jain and Bronte Parkinson.
Clifford Chance acted as legal counsel to 118 118 Money. The Clifford Chance engagement team was led by Adam Craig and James Watkins.