A Travers Smith team led by banking partner Ben Davis, tax partner Simon Skinner and corporate partner Edmund Reed, has advised 1st Credit (Holdings) Limited, a leading UK debt purchase company, on the issue of £100m senior secured private placement notes due 2020 through J.P. Morgan and a £20m revolving credit facility with RBS. The seven year, non-call three, 11% bond is priced at par. The deal was covered by a mixture of UK, US and European based investors already familiar with the sector. 1st Credit is backed by Bridgepoint Advisers.

Leith Robertson, Executive Chairman of 1st Credit, said: “The successful completion of this issue means that we have generated significant purchasing firepower, putting the company on the right path for the next phase in its growth. The cash the deal has raised, combined with the new RBS facility and strong cash flows puts us in an excellent position to invest in further loan portfolios.”

Travers Smith advised 1st Credit on the structuring aspects of the transaction for the wider 1st Credit group and the principal English law aspects of the private placement and RCF documentation.  Linklaters' US partner Alexander Naidenov advised 1st Credit on the US law aspects of the private placement. The Travers Smith team comprised corporate partner Edmund Reed, corporate associates Sonal Patel and Carys Clipper, tax partner Simon Skinner, tax associate Claire Prentice, banking partner Ben Davis, banking associate Kate Dickens and commercial partner Tom Purton.

This transaction builds on other recent transactions on which Travers Smith has advised in this sector, including advising the syndicate of lenders on the provision of financing to Arrow Global, Cabot Financial and CapQuest.

Ben Davissaid "We were delighted to be able to assist 1st Credit on such a significant transaction in the debt purchase sector and to support 1st Credit on its next growth cycle.  This transaction was particularly interesting in that it demonstrates how mid-market corporates can access the high yield market without a full public high yield issuance.  The transaction also further underlines Travers Smith's position as one of the leading providers of legal services to the debt purchase sector."

Allen & Overy LLP acted for J.P. Morgan, the noteholders and RBS.

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