New Day (UK)

2001

Private

Status: Performing

All payments are on time

All covenants met

BACK TO MARKET


Amount

£275,000,000

Current Yield

7.375%

*
Estimated Yield to Maturity

7.375%

**
Maturity Date

01 Feb 2024

Interest Payment Frequency

6m

Next interest payment

01 Feb 2018

Asset Security

First ranking charge over company assets

Industry Type

Financial

Next Call

1st Feb 2020 @103.688, 1st Feb 2021 @101.844, 1st Feb 2022 @100.0

ISIN

XS1554448271


Business Description

NewDay is a leading UK consumer finance provider, specializing in the near-prime and co-brands sectors of the UK credit card market. As of September 30, 2016, they had approximately 5.6 million customers in the United Kingdom and £1,620.8 million of gross receivables. New Day has two primary businesses, each of which focuses on specialist credit offerings within a different sector of the consumer credit market. i) Own-Brands: New Day provides credit cards designed to meet the needs of customers in the near-prime sector of the UK credit card market. New Day have issued credit cards in the Own-Brands business since 2002 and currently offer products under our aqua and marbles brands ii) Co-Brands: In the Co-Brands business, which they acquired from Santander UK in May 2013, New Day partner with well-known retail and consumer brands including Debenhams, House of Fraser, Laura Ashley and the Arcadia Group (namely, Topshop, Topman, Dorothy Perkins, Miss Selfridges, Wallis, Burton, Outfit and Evans) to provide co-branded credit cards and store cards to their partners’ customers. Based on the observed credit performance of the overall portfolio, they classify the Co-Brands portfolio as a prime portfolio. As of September 30, 2016, the Co-Brands business represented 38.8% of our gross receivables. New Day have recently partnered with the travel and tourism company, TUI, to launch the Thomson Credit Card and the online retailer, Amazon, to launch the Amazon Platinum Mastercard.


Capital Structure

Source: Public company information
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* This is the estimated return an investor can expect to receive over the next 12 months expressed in percentage terms. It is the sum of the expected interest payments over the year and where the coupon is partly dependent on Libor uses market based Libor forecasts at each coupon date and also takes into account the Note's current price. It is gross of taxation and our Service Fee. The current yield is therefore an estimated return only and is not guaranteed and may be revised in the future.
** This is an estimated annualised return gross of taxation and our Service Fee assuming the investment is held to maturity. It equates the present value of expected future interest payments of a Note into an annual yield across its life relative to the Note's current price. Where the interest coupon is partly dependent on Libor it uses market based forecasts of Libor and assumes that all interest is re-invested at a rate equal to the Yield to Maturity. For floating rate coupons because current market based forecasts are for Libor to increase in future years the calculation of Yield to Maturity assumes the interest paid to investors will be higher in future years. However, there is no guarantee that the Bank of England will raise interest rates or that Libor will increase as a result. In addition, any changes to the financial circumstances of the company or changes in the economic terms of the underlying loan could also impact future interest payments. The Yield to Maturity is therefore an estimated return only and is not guaranteed.

Status: Performing


Notes:

The company currently has no outstanding notes.

Capital at risk. No FSCS cover. See Risk Statement.

 

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