Another Deal Successfully Repaid: Alpha Group Completes Fintex Facility
We all love posts that say: ‘Hey, we closed another deal’. But in lending, getting money out the door is usually the easy part. Getting repaid is often harder. One marks the beginning of a chapter, the other is its happy ending. So here’s, for once, a post to say: ‘Hey, another deal successfully repaid!‘
The Borrower: Alpha
In H1 2024, Fintex came across Alpha Group, an excellent, profitable borrower. Alpha, who owns & operates a portfolio of 19 private schools (mostly freeholds), was at the time in a tricky situation: its pre-existing debt facilities from a UK high street bank had expired, and… with the Government’s introduction of VAT on school fees about to happen, the bank had no appetite to extend the facility, let alone increase it as needed to enable Alpha to meet its capex and working capital needs.
The Lender: Fintex
Fintex acted decisively. We provided a fresh 3-year facility of up to £20m, with a Day One draw of £17m, secured on Alpha’s OpCo’s & PropCo’s. This enabled Alpha to refinance and invest in its business while also strengthening working capital. Notwithstanding the impact of VAT being applied, Fintex acted with conviction that Alpha could withstand the resulting pressures and carefully structured its facility to build in adequate protections.
Exit
Last week, led by its iconic CEO Ali Khan, Alpha took the next leap: it secured a larger financing from a new bank and refinanced our debt. Well done, Ali & Co. – we like to see our borrowers succeed!
At Fintex, we take pride in working with our borrowers to find solutions when others can’t. For us, it’s never just about getting cash out the door. It’s about backing people and supporting good businesses – also in times of uncertainty. So here’s to strong partnerships, to win-win outcomes and – yes, also to money coming back. (The alternative… would be a lot worse!)
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