Splitit Payments Limited (“Splitit” or the “Company”) (ASX:SPT), a global payment solutions provider, announces that it has signed a US$150 million receivables funding facility with Goldman Sachs Bank USA to support the expansion of its business.
The new three-year revolving facility complements the Company’s strong balance sheet and is a key element of its growth and capital management strategies for 2021 and beyond. The facility is lower cost than Splitit’s existing funding and its use is expected to increase Splitit’s gross margins over time.
It will provide merchant funding for Splitit’s major markets along with a structure to facilitate additional jurisdictions over time, subject to legal due diligence.
Splitit CEO, Brad Paterson said: “This large committed facility from Goldman Sachs is a key pillar of our Merchant Sales Volume growth strategy. Demand from merchants in the US and Europe for our funded model has never been stronger, and coupled with our existing strong balance sheet, we now have the foundations in place to accelerate our growth plans whilst also driving improved margins.”
Key terms of the facility are summarised below:
• Size: Committed facility of up to US$150m
• Term: Three-year revolving line of credit
• Warrants: 13m warrants with a strike price of A$1.30, issued in three equal tranches depending on utilisation (vesting upon issue). Each tranche of warrants will expire 5 years after their respective issue date. The first warrant tranche will be issued on or about the first utilisation of the facility.
• Other covenants, representations & warranties, and reporting obligations typical of a similar Receivables Warehouse Facility
This announcement has been approved and authorised to be given to ASX by the Board of Splitit.