27 January 2023

Amigo Holdings PLC

Update on Capital Raise and Pilot Lending

Amigo Holdings PLC ("Amigo" or "the Company"), a provider of mid-cost credit in the UK, is today giving an update on its proposed Capital Raise and the pilot lending programme.

Capital Raise

Amigo's Scheme of Arrangement, sanctioned by the High Court in May 2022 (the "Scheme"), contains a preferred solution which is conditional on the completion of a 19:1 capital raise by 26 May 2023 (the "Capital Raise"), followed by the contribution of a minimum £15m payment to the Scheme fund for creditor redress.

Further to the market update issued on 16 January 2023, the Company has received a number of expressions of interest to support the Capital Raise. However, this remains below the targeted £45m of equity funding that the business requires and discussions are therefore ongoing. The Board continues to seek the best possible outcome for creditors, employees, shareholders, and other stakeholders. As outlined previously, if the Capital Raise is not completed, or the Board determines that it cannot be achieved, by 26 May 2023, the Scheme will revert to the fallback solution outlined in the Scheme (the "Fallback Solution"), which is an orderly wind-down of the business.

Amigo's cash position remains strong and, in the event the Fallback Solution is invoked, the seniority of the secured notes will be respected. The Fallback Solution would result in no value being attributed to the Company's ordinary shares.

Pilot lending

The Company initiated a pilot lending programme in late October 2022, shortly after receiving approval from the FCA to return to lending, under certain agreed conditions.

While the initial volume of loans written was very limited, volumes have increased substantially during January 2023. On the current run-rate, monthly originations are around £1m and expected to continue to grow as the conversion rate improves through the application of the learnings from the pilot lending period. Amigo retains its cautious approach to underwriting as it assesses the impact on customer affordability from the cost-of-living crisis.

The volume of completed loans has now reached a level such that the 'Skilled Person' testing of lending outcomes has commenced.

ENDS

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About Amigo Loans

Amigo is a public limited company registered in England and Wales with registered number 10024479. The Amigo Shares are listed on the Official List of the London Stock Exchange. Since October 2022, Amigo has offered guarantor loans and non-guarantor personal loans under its RewardRate brand. Both products reward customers for on-time payments with an annual, interest-free, payment holiday and the opportunity to reduce the effective APR, encouraging better financial management and facilitating a long-term improvement of customers' credit scores and financial mobility. Amigo has provided guarantor loans in the UK from 2005, offering access to mid‐cost credit to those who are unable to borrow from traditional lenders due to their credit histories. The guarantor loan concept introduces a second individual to the lending relationship, typically a family member or friend with a stronger credit profile than the borrower. This individual acts as guarantor, undertaking to make loan payments if the borrower does not. Amigo's back book of loans issued pre-November 2020 is in the process of being run off with all net proceeds due to creditors under a Court approved Scheme of Arrangement. Amigo Loans Ltd and Amigo Management Services Ltd are authorised and regulated in the UK by the Financial Conduct Authority.

Additional Information

This announcement is not intended to, and does not, constitute or form part of any offer, invitation, or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell, or otherwise dispose of, any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to this announcement or otherwise.

This announcement constitutes notice by Amigo Luxembourg S.A. (the "Issuer") to the holders of the Issuer's 7.625% Senior Secured Notes due 2024 (for the notes issued pursuant to Rule 144A of the United States Securities Act of 1933, ISIN: XS1533928468 and Common Code: 153392846; for the notes issued pursuant to Regulation S of the United States Securities Act of 1933, ISIN: XS1533928625 and Common Code: 153392862) (the "Notes") issued pursuant to pursuant to Section 4.03(a)(3) of an indenture dated January 20, 2017 among, inter alia, the Issuer, the guarantors named therein and U.S. Bank Trustees Limited, as trustee and security agent. Amigo Holdings PLC is the indirect parent company of the Issuer. This announcement shall constitute a "Report" to holders of the Notes.