Secure Trust Bank (STB) has purchased unsecured personal loan
provider Everyday Loans, giving the Moneyway parent the potential
to cross-sell a wider range of loan products to Moneyway dealer
partners.
STB’s 100% share purchase of Everyday Loans
Ltd and Everyday Lending Ltd (EDL) from Alchemy Partners Nominess
Ltd includes provision of £34m to redeem subordinated debt and a
maximum payment of £1.5m to EDL management, depending on
performance.
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The acquisition will give the bank the
opportunity to cross-market products, which may include Moneyway
motor and retail finance, to customers on the EDL loan book (of
£63.9m, 31 December 2011), and vice versa.
EDL will continue to trade under the Everyday
Loans brand. Initial lending under STB ownership will be funded by
the STB balance sheet plus a subordinated loan of up to £5m from
parent Arbuthnot Banking Group.
While Paul Lynam, chief executive of STB, was
pleased with the chance to widen distribution channels, Terry
Williams, chief executive of EDL, said the deal would free his
company from the constraints of the wholesale funding market.
richard.brown@vrlfinancialnews.com
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