The capital raised will be used to expand a financial service company’s loan book
Johnson Winter & Slattery (JWS) has advised on a deal that involves the refinancing and pre-pack administration of financial services company Rapid Loans Group through a deed of company arrangement and restructure.
As per the terms of the transaction, Rapid Loans Group will receive $50m from Australian credit fund management company DCF Asset Management in order to build up its loan book. This is crucial as the financial services company anticipates the skyrocketing of lending activity over the next year.
“As the fallout from coronavirus continues to impact global economies, the next 12 months will be a busy period for financial services companies like the Rapid Loans Group,” said JWS partner Joseph Scarcella.
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Rapid Loans Group estimates that it could be writing over $100m worth of loans to individual and business customers in this period.
“This complex pre-pack restructure and recapitalisation allows the organisation to meet increased demand in the coming months and provides additional funding to help the group deliver much needed financial support to businesses and individuals as part of the anticipated recovery in economic activity,” Scarcella said.
Over the last decade, Rapid Loans Group has financed over 50,000 car purchases, personal loans and small businesses in Australia and New Zealand.
Scarcella led the JWS team with regard to the restructuring aspects of the deal, alongside fellow partners Craig Wappett (banking and finance) and Amit Jois (corporate). They were supported on the restructuring and corporate end by special counsel Aidan Douglas and associate Rebecca Proudman.
JWS also worked together with Grant Thornton and Neu Capital.
DCF Asset Management was advised by Gadens on the transaction. Meanwhile, Maddocks acted for Deloitte, who served as the deed administrators for Rapid Securities Ltd.