The EY FS Corporate Finance team has recently advised Lantern Debt Recovery Services Limited (“Lantern”) on raising a £15m committed senior revolving credit facility from a syndicate of lenders consisting of Shawbrook Bank and Paragon Bank. The funding will be used to support the purchase of further non-performing consumer debt portfolios. The facility also has a built in £15m accordion feature which can be used to increase the senior commitment if required.
Launched in 2008, Lantern is a leading player in the Speciality Finance debt purchase market, focussed on purchasing and collecting portfolios of unsecured consumer loans. Having acquired and managed over 250 portfolios since 2008, representing c.£1.3bn of face value, Lantern has developed deep experience, knowledge and insight of the market, and has established itself as a trusted partner with a significant number of the leading specialist lenders. Lantern is backed by Copper Street Capital, a fast growing alternative investment firm with a focus on the financial services sector.
EY was appointed as sole financial advisor to run a process to explore senior funding options, put in place a structure to support Lantern’s go-forward portfolio purchase strategy, and help the business achieve its planned growth.
Commenting on the transaction, Denise Crossley, CEO of Lantern said: “Securing the new funding facility is an exciting development for Lantern, and reflects the confidence our institutional partners place in us. This is a significant endorsement of the talent of our team and business as a whole, where our skills, as a niche Purchaser of customers requiring a more bespoke collections approach, are in demand.”
Justin Bull, Partner and COO of Copper Street Capital commented: “This is another important step in Lantern’s development and the establishment of this facility will enhance the firm’s growth plans.”
Sarah Watts, Director in Structured Finance at Shawbrook Bank said: “We are delighted to be able to support Lantern. The specialist wholesale team at Shawbrook has a lot of experience in the debt purchase space and we’ve been able to structure a bespoke facility for the business that will be transformational as they continue to implement their growth strategy.”
Jamie Pickering, Director in the Structured Lending team at Paragon said: “Supporting British businesses so they have the ability to reach their ambitions is a key aim at Paragon, so we are proud to use our specialist knowledge to provide a facility that suits Lantern’s needs and will help it to achieve its aspirations to grow even further.”