LGB Capital Markets advises Rivers Leasing on wholesale debt financing and equity transaction
LGB & Co has completed a financing package for Rivers Leasing, with funding provided by Conister Bank across a range of facilities to support the growth of the company's lending activities along with the launch of a new block discounting product.
Rivers Leasing is an SME-focused alternative finance lender business based in London. The business was established in 2010 and provides small-ticket leases and business loans to UK SMEs operating in a variety of sectors. It has grown into an award-winning industry player and in 2020 was recognised by the Financial Times for the fourth year running as one of Europe's fastest growing companies.
LGB has had a close relationship with the company since 2015 as an arranger of its GBP25 million MTN Programme, which continues to be a strategically important source of funding for the company. Separate to this, LGB began working with Rivers Leasing on an advisory basis in 2020 with a view to further growth and expansion of the business post Covid-19 and securing the most appropriate capital structure and funding partner to achieve the company’s growth ambitions.
The transaction was concluded on 27 May and sees Conister Bank provide a flexible funding package comprising up to GBP6.25 million in aggregate revolving credit facilities, CBILS and term loans. Conister has also taken a minority equity position in Rivers Finance Group PLC (the holding company of Rivers Leasing), in addition to warrants exercisable under certain conditions, with a view to providing additional facilities and creating a long-term partnership with the company.
Ratan Daryani, Managing Director of Rivers Leasing, says: “It is wonderful to be starting the post-lockdown year at a point where we can bring plans for the company’s growth and development to fruition, and, in particular, to be doing so with the support of those that we both respect and have longstanding relationships with.”
Dan Lawson, who led LGB's advisory team, says: "We are delighted that Rivers Leasing's careful and proactive management of its business in the last 12 months enabled the company to secure funding resources from Conister Bank. We are also pleased to have demonstrated our advisory capabilities in difficult circumstances and to have shown how an MTN programme can complement wholesale funding lines."