Lowell to acquire Hoist Finance UK

The acquisition includes the operations of Hoist Finance UK and its entire unsecured non-performing loan portfolio, comprising over two million consumer accounts almost exclusively in the credit card and personal loan sector. 

As of December 2021, there were approximately £585m 180-month Estimated Remaining Collections (ERC). 

The £370m transaction value is based on an enterprise value basis at 31 December 2021, which accounts for £340m of net debt. 

The move continues Lowell’s strategic expansion into the UK financial services sector, specifically banking. It will enable Lowell’s access to improved data insight from the financial services market, with the effect of speeding up pricing and analysis whilst reducing investment risk. 

Completion is subject to approval from the Financial Conduct Authority (FCA), which is expected in Q3 2022. Lowell said it expected to maintain leverage within its guided range of 3.5-4.0x upon completion of the transaction. 

Lowell also announced the issuance of the first European Rated Loan ABS. 

The new securitisation, via Wolf Receivables Financing PLC, comprises 357,000 reperforming customer accounts with approximately £180m ERC over 120 months.

Lowell said its acquisition of Hoist Finance UK will be funded via a combination of proceeds from the new securitisation, strong operating cash flow and existing funding sources. 

Jamie Wilson, chief financial officer at Lowell, said: “These two transactions deliver against our stated goals, continuing to grow our business and diversify our revenues and balance sheet”.

John Pears, UK chief executive officer of Lowell, said: “This transaction is another big step in our UK story, another springboard for our growth. We are not only expanding our customer base and our expertise in financial services but we are adding a massive amount of insight and data to our operations.

"Alongside welcoming new team members and sector experience, this is a transformational deal for Lowell in the UK, cementing us as an industry leader”.