First securitisation for PrimaDollar
PrimaDollar announces the closing of a new revolving credit facility arranged and structured by NIBC Bank Deutschland AG (“NIBC”), advised by Reed Smith in London. Two senior lenders (NIBC and Advance Global Capital) are participating from the start.
This multi-million USD multi-currency facility is an innovative financing solution that could be a template for alternative finance companies across Europe and overseas. This new facility is notable for a number of reasons:
- The facility takes PrimaDollar’s available financing firepower up to over US$100m per annum
- The facility is asset-based, and based upon LMA standard documentation
- Two senior lenders are involved from the start (NIBC and Advance Global Capital) and more lenders can be added easily
- The facility is structured to meet international bankruptcy-remote standards but with a straightforward set-up without requiring a true sale. The borrower is wholly-owned by the PrimaDollar group
Tim Nicolle, CEO of PrimaDollar, commented that:
“This facility is an important milestone for PrimaDollar. The NIBC and Reed Smith teams have pulled together to create a flexible and powerful financing structure which operates on a revolving basis. PrimaDollar is scaling quickly, and now has the low-cost finance available that our international clients need. Many of our clients are SME exporters in emerging markets who have limited access to finance without collateral. We are also pleased that we have been able to retain Advance Global Capital as a continuing lender into this new facility – as their early support to our business has been invaluable.”
Oliver Issl, NIBC, commented that:
“PrimaDollar is one of a number of entrepreneurial alternative finance and fintech platforms that we have targeted to support. We structured this facility as the corner stone of PrimaDollar’s borrowing strategy going forward – with us and with other lenders getting involved as the business scales up. This is a clear example for how state-of-the-art receivables financing techniques enable us to support entrepreneurial clients with flexible and innovative financing solutions.”
Nate Hartley, CEO, Advance Global Capital Limited commented that:
“AGC’s participation in this facility demonstrates our ability to support businesses from early stage through later phases of development. We have watched and supported PrimaDollar’s growth as they transformed into a main player in the alternative finance marketplace. We have a number of other earlier stage platforms that we have supported which are also now reaching the point where multi-lender facilities will take over from us as a sole lender and we expect selectively to do more of these follow-on trades going forward.”
Nick Stainthorpe, partner at Reed Smith, commented that:
“We were delighted to assist the PrimaDollar and NIBC teams to bring this transaction to fruition. They brought decades of structuring experience to bear on the challenge of building a foundation for the PrimaDollar international trade finance platform. Pulling all of this into a robust set of legal documents that can support the flexible requirements of a demanding client has involved innovations – which will form a template for transactions going forward.”
PrimaDollar is a British-based international trade finance platform with clients in 20 countries and eight offices on three continents. Our typical clients are SME exporters in emerging markets who have limited direct access to finance, but who have creditworthy international buyers. Working with PrimaDollar provides them with collateral-free, low cost finance which scales up as their businesses grow. We are growing quickly, generating high quality, credit-insured receivables which are ideal for asset-based financing.
NIBC is an enterprising bank focused on our clients’ most decisive financial moments. From our offices in The Hague, Amsterdam, Frankfurt, London and Brussels, NIBC serves around 600 mid-market businesses through a portfolio of client-focused products and services.
As a professional, entrepreneurial and inventive financial partner, we build long-term relationships based on trust, transparency and reliability.
We develop tailor-made solutions for our clients to meet their changing needs, and to be ready to serve them at critical moments.
We offer advice and debt, mezzanine and equity financing solutions to entrepreneurs across selected sectors and sub-sectors in which we have strong expertise and market positions among mid-sized businesses.
Advance Global Capital Ltd, an investment manager based in the United Kingdom, specialises in financing confirmed invoices of small and medium-sized businesses (SMEs) in under-served markets. We invest in assets backed by assigned invoices to connect SMEs in need of working capital with investors who seek commercial rates of return and positive social impact. Working capital for SMEs fuels the engine of economic growth where it can make the biggest difference. Access to financing in challenged communities increases financial inclusion, develops stronger financial ecosystems, and creates positive social impact whilst delivering commercial returns.
About Reed Smith:
Reed Smith is a full service, international law firm with offices across Europe, the US and Asia. The firm has a particular focus on asset-based and structured finance transactions for borrowers, lenders and service providers in developed and emerging markets. Sector coverage includes advising on financing to specialty finance lenders in consumer, working capital and supply chain finance through bank lending, securitization and capital markets.
Tim Nicolle +44-1483-568040 [email protected]
Guy Willans +44-1483-568040 [email protected]
For immediate release
26 June 2018