Umbra was mandated to arrange a +£100m debt facility for Hastee to allow registered employers to advance their employee's earned pay, on demand.
Umbra ran a competitive process and there was significant interest from debt funds and banks. However, in order achieve maximum flexibility, 100% LTV and minimal dilution, Umbra created a £200m dedicated Hastee debt fund, which entered into a bespoke, flexible revolver credit facility to fund the salary advances. The facility is short duration, insured and secured against payroll receivables. Umbra invested alongside a private bank, families and multi-family offices.
Additionally, Umbra invested a significant minority stake in the business via a combination of own funds and value added members of the Umbra family (with connections to large employers) and rolled the majority of their advisory fees into equity.
Umbra are very excited about the economic and social impact of this transaction and believe every employee should – and will – have access to their earned pay as soon as they earn it, and avoid expensive payday loan providers.