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Secure Trust Bank PLC Acquisition of Everyday Loans

Secure Trust Bank PLC (“STB”) is pleased to announce that it has acquired today 100 per cent of the shares in Everyday Loans Holdings Limited and its wholly owned subsidiaries, Everyday Loans Limited and Everyday Lending Limited (together, “EDL”, “Everyday Loans” or the “Business”). EDL was controlled by Alchemy Partners Nominees Limited (“Alchemy”) and the EDL management team. STB has acquired Everyday Loans for consideration of £1. Upon acquisition STB has immediately provided funding so that EDL can redeem the remaining circa £34 million of subordinated debt principally held by Alchemy. A payment of up to a maximum of £1.5 million will be made to the management team of EDL in March 2013, subject to achieving certain performance targets. The upfront cash payments and the additional regulatory capital requirements arising from the enlarged STB balance sheet will be funded from STB’s existing resources with additional regulatory capital requirements being satisfied by fair value adjustments arising from the transaction and a capital injection of up to £5 million from Arbuthnot Banking Group PLC (“Arbuthnot”) in the form of a subordinated loan. The subordinated loan is on the same terms as the existing STB subordinated loan from Arbuthnot. STB has received all of the necessary regulatory approvals in relation to this transaction. STB will consolidate EDL for regulatory capital purposes. Everyday Loans is a provider of unsecured loans to a customer base predominantly in lower income groups and operates through a national network of 25 offices where loans are originated, serviced and collected. The Business will continue to trade using the “Everyday Loans” brand. Everyday Loans had a loan book of £63.9 million as at 31 December 2011 and generated underlying operating profits before tax and subordinated debt interest under UK GAAP of £4.6 million (£2.8 million under IFRS) for the year ended 31 December 2011 and an estimated £1.8 million (£1.2 million under IFRS) for the four months ended 30 April 2012. The difference between the IFRS and UK GAAP profits predominately relates to the timing of the recognition of origination fee income. EDL has significant brought forward tax losses which it will be able to utilise following the acquisition. STB is providing EDL with a new loan facility of circa £37 million to refinance EDL’s existing bank debt and to fund future loans. This will enable STB to utilise surplus deposits referred to in previous disclosures. The acquisition is expected to be earnings enhancing for STB in the current financial year. Paul Lynam, Chief Executive Officer of Secure Trust Bank PLC, said: “The acquisition of Everyday Loans represents a significant strategic development for Secure Trust Bank. We will be able to broaden our distribution channels and our routes to a wider market, with particular emphasis on direct and technology-based platforms and subsequently diversify and extend our lending portfolio. “The strong synergies between Secure Trust Bank and Everyday Loans’ customer bases will also mean that opportunities to cross-market products will be open to both companies.” Chief Executive Officer of Everyday Loans, Terry Williams, said: “We are delighted that we have concluded this deal with Secure Trust Bank. It creates a good opportunity for all of us and opens the path for Everyday Loans to benefit from the strong position we have built up over the last six years and expand the business - without being constrained by the wholesale funding markets. We can also see opportunities in the future where both companies will benefit from synergies between our customer bases and the plans to enhance the range of products that can be offered to these customers.”

Posted in Debt Consolidation, Press Release, Unsecured Loans on Jun 08, 2012.

Representative Example: Borrowing £3,000 over 24 months at an interest rate of 71.3% p.a. (fixed), you will repay 24 monthly payments of £238 per month. Interest Payable £2,706. Total Repayable £5,706. Representative 99.9% APR.

Andrew Wayland - CMO

Andrew WaylandAndrew helped set up Everyday Loans back in 2006 acting as the driving force behind the sales and marketing strategy for generating business to this day. Prior to his position with Everyday Loans he worked as the Head of Commercial Development for a tech start up and ran his own PR agency for around 5 years.