Dinimus Capital backs restructuring and recapitalisation for Rapid Loans
Johnson Winter & Slattery (JWS) has advised the Rapid Loans Group on the refinancing and pre-pack administration through a deed of company arrangement and restructure.
Firms: Johnson Winter & Slattery (Rapid Loans); Gadens (Dinimus Capital)
Deal: Johnson Winter & Slattery (JWS) has partnered with Grant Thornton and Neu Capital in advising the Rapid Loans Group and its shareholders on the refinancing and pre-pack administration of the Rapid Loans Group through a deed of company arrangement and restructure.
The transaction will see Australian credit fund manager Dinimus Capital provide $50 million in new capital to the non-bank lender.
Value: $50 million.
Area: Banking & finance.
Key players: The JWS team was led by partners Joseph Scarcella on the restructuring elements, Craig Wappett for banking and finance and Amit Jois for corporate. Special counsel Aidan Douglas and associate Rebecca Proudman advised on both the restructuring and corporate aspects of the deal.
Deal significance: Rapid Loans is expected to use the capital to ramp up its own lending.
The Rapid Loans Group will use the funding to expand its loan book, estimating it expects to write more than $100 million of loans in the coming 12 months.
Mr Scarcella said the transaction was a win for both the Rapid Loans Group and its customers.
“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. This complex pre-pack restructure and recapitalisation [allow] the organisation to meet increased demand in the coming months and [provide] additional funding to help the group deliver much-needed financial support to businesses and individuals as part of the anticipated recovery in economic activity,” he said.
Rapid Loans reckons the $50 million injection should help it write more than $100 million of loans in the coming 12 months, during what could be a busy time for finance companies.
Rapid Loans lends to personal and business customers, offering finance for cars, personal loans and to small businesses. It has written loans for more than 50,000 customers in Australia and New Zealand in the past two decades.