zipMoney to partner with a Big 4 Australian Bank in a $200m financing arrangement
zipMoney Limited is pleased to announce that it has agreed key terms with a ‘Big 4’ Australian bank for the provision of a $200 million asset-backed securitisation warehouse program for its consumer receivables.
CEO and Managing Director Larry Diamond said: “This is a transformative step forward for the Company. As well as creating capacity to fund the growing demand for our services, it will approximately halve the weighted average cost of capital of our loan book, which directly contributes to our bottom line. We are very pleased to be partnering with this ‘Big 4’ Australian bank and look forward to releasing further details in due course.”
COO and Executive Director Peter Gray said: “zipMoney was established as a technology-driven financial services company with a strong focus on delivering financially-responsible credit products to our customers. We have a clear strategy to capitalise on the very large market opportunity and this is a key milestone that demonstrates continued execution of that plan. The new credit facility allows us to continue our rapid growth and enables further penetration in our target markets.”
The key terms of the financing agreement provide for conditions which are typical for this type of secured facility. The transaction is subject to satisfying these conditions and finalizing documentation. The facility is expected to be operational in Q4 FY17.
zipMoney is also pleased to announce it has extended its current funding facility with Victory Park Capital. The current commitment has been upsized by $30 million, increasing the total facility limit to $140 million. zipMoney also retains the option (at its favour) to increase the facility up to $200m.
zipMoney intends to refinance more than 50% of the Victory Park facility into the new ‘Big 4’ facility once it is operational. The increase and amendments to this facility provide zipMoney with a comprehensive and diversified funding program to support its continued growth.
zipMoney Limited is being advised by King & Wood Mallesons.
