Nucleus Cash Flow Finance2 Limited

The principal activity of the Company (NCFF2) continued to be that of the provision of alternative business financing via two methods. The first is as a SPV within the Nucleus Group, where loans are originated from the company and retained for the life of the loan. The second is operating within a special purpose entity (SPE) arrangement with Atom Finance Ltd, where loans are originated from the company and sold to the SPE. The Company originates both Nucleus Business Loans (NBL) and Nucleus Revenue Based Loans (RBL) under a £25,000,000 uni-tranch debt facility. The Company then has further debt facilities with Pollen Street Capital (PSC) in Nucleus Cash Flow Finance3 Limited ( N CFF 3 ) and a securitisation, where Natwest are the Senior Debt Provider, in an orphan SP E Atom Finance Limited. Both the Atom and PSC facilities purchase qualifying Nucleus Business loans originated by NCFF2 on an ongoing basis. Non-qualifying NBL and RBL loans remain within NCFF2 portfolio. NCFF2 will continue to originate loans for both the PSC and Natwest facility until maximum limits are reached, £50m in the PSC facility and c.£260m in the securitisation SP E . NCFF2 also holds the credit enhancements (equity or Junior Loan notes) in both NCFF3 and Atom .