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Payright secures funding package to pursue growth - TechInvest Magazine Online

Written by Staff Writers | May 24, 2022 9:39:40 AM

Payright (ASX: PYR) has completed settlement of Goldman Sachs Warehouse and Milestone Funding Package involving a $125 million warehouse facility and $9.5 million capital raise.

The funding package further validates Payright in the point-of-sale consumer financing sector, giving the business the ability to scale at significantly reduced funding costs while maintaining a desirable loan-to-value-ratio (LVR). With a strengthened balance sheet, reduced cost of funding, and all key lead indicators growing strongly, Payright is well positioned to accelerate its growth strategy and fast track its path to profitability.

The Goldman Sachs warehouse facility will immediately lower the cost of funding by approximately 50%, resulting in an annualised cash flow benefit of ~$4.4m (based on the receivables balance as of 31 March 2022).

Commenting on the announcement, Co-CEO’s Myles Redward and Piers Redward said:

“This is a major milestone for Payright with the implementation of our first warehouse funding facility and settlement of the concurrent capital raising. We appreciate the efforts and support of Goldman Sachs as senior lender and iPartners as mezzanine arranger and look forward to continuing to work with both parties as Payright accelerates its growth objectives”

https://www.payright.com/