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Travers Smith advises Shawbrook and Paragon on amendments to a senior syndicate financing facility made available to Lantern

Overview

Travers Smith LLP has advised Shawbrook Bank Limited (Shawbrook) and Paragon Bank plc (Paragon) on amendments to a senior syndicate financing facility made available to Lantern Debt Recovery Services Limited (Lantern).

The amendments will help support Lantern’s strong pipeline of consumer debt portfolios across the speciality finance & vulnerability management markets and provide the business with the necessary operational flexibility to pursue growth.

Lantern is a leading player in the speciality finance and consumer vulnerability debt purchase markets. It has acquired and managed over 300 portfolios representing c.3 million customers and £1.5 billion of face value to date. During COVID-19, the business model has proven resilient due to a strong customer first approach that saw Lantern recently receive a rare Gold Standard award for Customer Care, and consumer lenders increasingly seeking to partner with them, creating a strong acquisition pipeline.

The senior amendment, which included an upsize in the current facility and improved commercial terms, is a signal of recognition from Lantern’s existing funders, both on the strength of its business performance to date, and its expanding pipeline. The increased facility was secured in addition to a substantial further equity investment from owners Copper Street Capital.

The Travers Smith team was led by Finance Partner Charles Bischoff with support from Associate Andrew Surgey and Trainee Christian Greenhill-Hooper. The team also advised on the original facility in May 2019.

Partner Charlie Bischoff said: "It has been a challenging year and we are very pleased to work with Shawbrook and Paragon again as they continue to support Lantern and its growth ambitions with these amendments. Thanks to the experience of all parties involved in this transaction and the strength of relationship that both Shawbrook and Paragon has with Lantern, these amendments were completed smoothly as the UK returned to national lockdown measures."

Lantern was advised by Addleshaw Goddard. EY acted as financial advisor.

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