Posted on 25th August 2022

Leading law firm Blake Morgan has advised Propel Finance, the fastest growing asset finance lender in the UK, on its first private securitisation as part of a £500 million financing round.

Following several initial funding rounds with the British Business Bank, Propel Finance is expanding and diversifying its funding base to support its continued growth and enable it to provide more support for UK SMEs.

Blake Morgan was the legal strategic adviser to Propel, providing support to help structure and complete the transaction and execute on the inaugural securitisation. This was a complex, large scale, transaction involving the restructuring of the existing funding stream, negotiating the terms of the incoming facilities and co-ordinating the completion of the three interrelated transactions.

The firm’s structured finance team specialises in providing advice for a broad range of participants in transactions, including banks, bridging funders, funds, investors, issuers, originators and arrangers. It has extensive experience in facilitating securitisation, and harnessed this to advise Propel Finance on this transaction.

In this private securitisation, Citi has structured a £275 million private securitisation facility and Quilam Capital has provided an additional £35 million mezzanine and working capital facility, which will enable the partial refinance of Propel’s existing funding stream through the British Business Bank.

The British Business Bank – the UK government’s business development bank – will continue to be an important funding partner for Propel, with this securitisation enabling a partial refinance of its ENABLE funding facility that will allow Propel to provide around £165 million of finance to SMEs across the UK.

Kath Shimmin, Chair at Blake Morgan, said:

As a firm we have strong expertise in banking, and it’s been fantastic for our structured finance team to support on this major private securitisation which will enable more SMEs across the UK to access funding. The team is experienced in working with both banks and lenders, and has harnessed this to advise Propel Finance on this transaction.

Catrin Nation, Head of Legal at Propel Finance, said:

2022 has been a game-changing year for Propel, which has seen us awarded fastest growing asset finance provider in the UK. Blake Morgan has supported Propel on some of our most exciting projects, including our new funding arrangements with Citi, Quilam and the BBB to the tune of c£500million and we are thankful to have such a great partner alongside us.

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