Slaughter and May advised NewDay Cards Ltd and its affiliates (NewDay) in relation to a new partnership with Lloyds Bank plc and its affiliates (Lloyds) to establish an embedded finance product leveraging NewDay’s technology. As part of the partnership, Lloyds and NewDay will each make available point of sale financing to selected consumers who apply via merchant partners’ sales channels. In the case of the financing made available by NewDay, this will take the form of its innovative digital consumer credit platform Newpay, which offers revolving credit accounts with a variety of repayment options made available at checkout. Slaughter and May advised NewDay on the contractual arrangements governing the partnership and the promotion of the lending product, as well as the provision of NewDay’s market-leading dual-lending technology solution to Lloyds.
Slaughter and May also advised NewDay on certain joint venture shareholder and funding arrangements and the issuance of £200,000,000 Class A Asset-Backed Floating Rate Variable Funding Senior Notes under a private securitisation to fund the Newpay product (the Senior Notes). The Senior Notes are listed on The International Stock Exchange (TISE). NewDay continues to originate and service the securitised assets.
Hogan Lovells and Clifford Chance provided advice to Lloyds.
Slaughter and May worked closely with NewDay’s in-house legal team, led by Stuart Whitty-Lewis, Anthony Hartley, Kate Osborn and Adam Dalton.