Reed Smith advised Balder on acquisition of SME loan…

LONDON – Global law firm Reed Smith advised Balder on the acquisition of a portfolio of small and medium-sized enterprise ("SME") loans from an originator in administration. The portfolio was acquired by an Irish special purpose vehicle ("SPV") established by Balder, which issued senior and junior notes to fund the acquisition. GB Bank Limited subscribed for the senior notes, with 4Syte Invoice Finance Ltd, a Balder affiliate, subscribing for the junior notes and acting as servicer of the portfolio. 4Syte is a leading UK provider of invoice finance solutions to SMEs.

The transaction forms part of Balder's broader strategy to expand its UK SME lending platform. The note programme also allows the SPV to fund the purchase of further receivables originated by 4Syte on an ongoing basis, strengthening and diversifying 4Syte's capital structure and providing additional capacity to support SMEs across the UK with flexible access to working capital.

The Reed Smith deal team included partners Nick Stainthorpe and Philip Orme, and associate Vasia Chorafa.

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