Supply @ME Capital PLC Inventory Funding: Securitisation Issue Update (7416D)

TIDMSYME

RNS Number : 7416D

Supply @ME Capital PLC

30 October 2020

30 October 2020

Supply@ME Capital plc

(The "Company", "Supply@Me" or "SYME")

Inventory funding: Securitisation Programme key update

Supply@ME Capital plc, the innovative fintech platform which provides a unique, market leading Inventory Monetisation (c) service to European manufacturing and trading companies, is pleased to provide the following update regarding its Inventory-backed Securitised Note Issue programme.

The Company announced on 10 September 2020 that it was analysing whether to syndicate its first securitisation note across a number of investors, or work on an exclusive basis with one investment fund. Following detailed evaluation, SYME confirms that it has agreed to partner on an exclusive basis with a global investment fund (the "Investor") whose intention is to subscribe for the whole of the first issuance and become an ongoing partner of the Company. Whilst this decision has put back slightly the date of completion of the first issuance, the opportunity to form an ongoing partnership with the Investor will provide valuable benefits to SYME, both in the short and long-term.

Supply@ME is also pleased to confirm that the Client Companies included in the first Inventory Monetisation transaction are now fully on-boarded and that the Platform continues to originate further corporate clients through its strong network of local partners and intermediaries.

The decision to work with a single funder for the first securitisation transaction is based on the following.

   1.    International large volume investor in credit opportunities 

The Investor is a leading global alternative investment fund manager, founded in the 1980s, with a globally diversified investment portfolio valued at more than $70 billion.

It has an extensive track-record of structuring, optimizing and executing capital markets solutions across many asset classes, as well as in the development and growth of various forms of lending businesses.

   2.    Ongoing partnership 

The Investor intends to form an ongoing partnership with Supply@ME. Its objective is to support the growth of the inventory monetisation business to achieve a significant critical mass of inventory assets held, combined with a funding track-record, such that it can explore other sources of finance at lower cost for future SYME securitisation note issues.

The Investor is also evaluating the acquisition of a minority equity participation in SYME.

As announced on 28 September, this first portfolio Inventory Monetisation is expected to have a value of approximately EUR300m and deliver approximately GBP20.5m of annual revenue into its securitisation vehicles. This is expected to generate average annual net servicing fees of GBP6.5m for Supply@ME.

Final negotiations, operating and regulatory tasks are proceeding well. The objective is to complete the first transaction in the coming weeks together with a scalable funding agreement that enables the Investor to increase its investment and monetise additional Client Companies that are in the pipeline.

In accordance with confidentiality agreements signed by each of the parties, a further regulatory announcement on completion will include details of the Investor.

Notes

Supply@ME enables businesses to generate cashflow, without incurring debt, by monetising their existing stock. Before a business has found an end-customer for its inventory, the Supply@ME platform enables them to sell ("monetise") their stock and receive cash immediately to boost their working capital. The Supply@ME service enables strong companies to improve their working capital cycle. SYME does not monetise inventory for companies in financial difficulty or with inventory that they are struggling to sell.

Contacts

Alessandro Zamboni, CEO, Supply@ME Capital plc, [e-mail]

Paul Vann, Walbrook PR Limited, [phone]

Brian Norris, Cicero/AMO, [phone]

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October 30, 2020 03:00 ET (07:00 GMT)