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Mogo Finance: EUR 25 million Tap of the July 2022 9.50% bond

  • 4th December 2018

 

KNG Securities LLP (UK) acted as lead manager, arranger and book runner on the  EUR 25 million tap of the July 2022 9.50% for Mogo Finance. Despite the market backdrop and in the midst of several deals being pulled in the HY space, the deal was timed to perfection to deliver a great transaction.

The mandate was announced mid-October and the company embarked on an extensive roadshow in Europe to discuss financial results for the 9 months ending September 2018. On the back of strong feedback during the roadshow, company decided to go ahead with a transaction, books were opened on the 6th and the deal was priced on the 9th. The tap was well oversubscribed with a good mix of asset managers, family offices and private clients and despite the market volatility, the bond has performed well in the secondary.

The tap was priced at par to yield 9.50%. With the original deal of €50m priced in July, this takes the overall outstanding amount to €75m which is a fantastic result for an issuer in the alternative lending space.

Mogo Finance is one of largest and fastest growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo has expanded its operations to several countries issuing over €325million to date and running a net loan portfolio of over €134m. Company is now operating in 12 countries; while Baltics and Georgia remain the main markets, company has made good progress in locations like Poland, Romania, Bulgaria, Moldova, Armenia and has starting entering markets in Central Asia.