Amigo - comment

On today’s call Amigo management said that they would not initially be taking out bank debt to support the launch of the new lender. The impact here is that the bonds will remain outstanding beyond the May capital raise deadline. Once bank debt or securitisation is needed, the provider will want a clean structure with the bonds repaid. Otherwise, the call was pretty uneventful. The current pilot scheme runs for another two months and then will be reviewed by the FCA before full lending can resume after the capital raise. The primary focus for the regulator is on performance of Amigo’s platform. Finally, the claim total was some 25% above the level predicted by Amigo, there is no direct impact on creditors, but this is bad news for claimants as the p/£ recovery will be lower (depending on uphold rates and redress balances).