Provident Financial 6% Sept 2021

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Comments

  • hmm. That makes sense because someone has been soaking up PFG shares against the flow since the AMGO ruling.

    I'm not sure what it means. Must be good for PFG equity and bond holders though.
  • Thanks dandigirl and JD, hope this is good news and that they know something more than we do. I also saw that Schroders have around 15% as at 29/4 and Coltrane , Grand Caymans around 5% as at 20/5. Given the RNS normally takes a few days/week to publish major shareholdings we are running behind the leaders of the pack. On the face of it for us mere mortals it looks goodish.
  • 21's being quoted at 98.5p to buy. Might be of interest to someone here with more risk appetite than me.

    23's being quoted at 95.7p so doesn't look like a general sell-off.

    I haven't looked at the 100k 2023 issue.


    I'm surprised there hasn't been a bit more selling on the 23's given AMGO lost their court case.

    Please note. I am bringing this to the Board's attention but I''m not buying and I do not hold either the 21's or 23's, having sold mine as these schemes worry me (perhaps unnecesarily)
  • Not sure I'd want to buy the 21s at that price. Not enough time left to make it worthwhile unless you're investing multiple times what I could afford but I do still own quite a few of them purchased aabout a year ago.

    My understanding is that, assuming they are still around come the end of September, then there isn't anything they can do but pay up or offer a carrot to roll over (but in that event it's the holders decision whether to take the money or the carrot).
  • Think that the 21's are okay although terms of the "carrot" should be interesting.

    But the 23s? £250m to be refinanced plus £60m.

    Must be hoping that the rump of the business is strongly performing by then to facilitate this.

    There is probably some regret that they raised such a big amount which now has to be refinanced in one go. [I haven't reviewed the prospectus for partial redemption].
  • See the ords down 4.5% or so this morning-it's going to be a helter skelter ride over the next few months.
    While a substantial sweet carrot sounds good and tasty not sure about chewing on a wurzle.
  • Redwood now above 11%. Nice to see someone has confidence.
  • I see in this mornings papers that NSF are closing their guarantor lending division due to the possibility of redress to customers. So all the big 3 in this type of lending are now out ( NSF, Provi and Amigo ). End of an era and a new window for the crim gangs with baseball bats.
    I guess this has to be a bit of a negative for Provi ( as in the die is cast) yet the ords have gone up this morning. !
  • LONDON (Reuters) - British subprime lender Provident Financial Group has been given the green light by the High Court in London to pay partial compensation to customers missold loans by its doorstep lending business as it closes it down.

    Provident said on Wednesday it had received a court judgment sanctioning its scheme of arrangement, despite concerns raised by regulator the Financial Conduct Authority (FCA) that it would short-change customers.

    The subprime lending industry, which lends to people who can't get a loan from mainstream banks, has faced regulatory scrutiny in recent years and a surge in claims from customers alleging they were sold unaffordable loans.

    Provident, which also offers credit cards and vehicle finance, is providing a 50 million pounds ($70 million)compensation pot for doorstep lending customers to cover partial refunds to anyone with a valid misselling claim.

    The FCA said it had made clear it did not support the scheme, adding the company remained under investigation for its conduct. However it had previously decided not to oppose the scheme in court because the only likely alternative was the insolvency of the doorstep business.

    Malcolm Le May, chief executive of Provident, said: "We believed from the outset that the scheme was fair and that it offered the best outcomes for customers".
  • Yes, and a further update next week when the interims are published 11/08. Be surprised if they don’t take the opportunity to announce a new bond to refinance that due next month.
  • Interims out this a.m. Well received it seems as shares have risen. No mention of a new bond but there has been a big increase in facilities to facilitate repayment next month.

    Only did a quick skim but the following caught my eye:

    """The Group continues to explore a number of options to improve capital efficiency. These include supplementing the existing capital base that is made up entirely of Common Equity Tier one with debt capital (in particular Tier 2) to support growth and the Group's return on capital, and that can be issued from the Group's EMTN programme. The Board continually monitors its risk appetite in respect of the appropriate level of regulatory capital headroom""".

    The 23s could be worth another look.


    https://ir.design-portfolio.co.uk/viewer/26/18658?utm_campaign=12583572_RNS alert (PFG:18658)&utm_medium=email&utm_source=Design Portfolio Marketing Services&dm_i=9LG,7HPJO,4CE8P4,UGOTD,1
  • Maturity on Monday (I think). What to do with the proceeds?? Decisions, decisions.
  • Received my redemtion money for those held with iDealing today. Does anyone know off the top of their head whether there should also be some income earned from last payment date to today's date?

    Nothing of either for those held with HL (no real surprise there as they always seem to pay late).
  • Without checking, I think there should also be the last coupon payment.

  • Deffo, par + last coupon on maturity for all bonds.
  • Now where to invest proceeds? Nothing appealing in fixed income at the moment....
  • HL credited redemption proceeds today.
    No final coupon as yet via HL or iDealing (iD confirmed that they hadn't received it as of 11.00am today)
  • Coupon in from AJ Bell this afternoon. Something's wrong - they are nearly always last in my experience!
  • Your post reminded me to check. iDealing and HL both credited coupon this afternoon (HL date it yesterday which I really hate).
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