Wisr strengthens balance sheet with additional $25 million facility
Credit approval was also received for a new Warehouse Facility to support growth projection.
Wisr Limited (ASX: WZR) is pleased to announce it has secured a $25M debt facility, providing additional robustness to its balance sheet, and has also made material progress towards securing a new Warehouse Facility with another Big 4 bank.
Debt Facility
Wisr has executed an agreement for an institutionally-backed debt facility to support the Company’s ongoing growth and path to profitability. $20M will be drawn initially, and a further $5M is available subject to certain milestones being achieved. The facility will be drawn at the head company (Wisr Limited) level, and the scheduled maturity date is 1 July 2025. Wisr will use part of the proceeds to repay its existing $6.5M debt facility, which matures in May 2023.
Warehouse Funding
Wisr has also received credit approval from a Big 4 bank for a new Warehouse Facility, supporting both personal and secured vehicle loan growth. This new facility will further diversify Wisr’s funding sources, enhance growth through funding capacity and add further balance sheet robustness. The market will be updated on further developments as they become available. The Company is on track to meet its guidance to the market of an additional warehouse facility being operational in FY23.
Andrew Goodwin (pictured), Chief Financial Officer, Wisr, said, “Given the current market conditions, diversification of scalable funding sources and balance sheet robustness is prudent. These provide Wisr with the flexibility required to deliver profitability1 in the short term and support our medium-term growth ambitions. Receiving institutional debt funding and credit approval from another Big 4 bank is a testament to the Wisr lending platform, our technology and processes and the continued strong performance of our prime loan book.”
“Wisr is in a strong position to navigate current market conditions, protect the business from any prolonged economic downturn and deliver a profitable business. Our confidence in the Company’s resilience stems from the combination of a material reduction in operating costs, lifting yield through forward loan book rate increases to customers, moderated growth plans, the performance of our prime loan book with 90+ day arrears at 0.89% (30 September 2022) and framework already in place to manage credit quality through the cycle.” finished Goodwin.
