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- The Market Herald (TMH) secures a refinancing agreement with the Commonwealth Bank of Australia (CBA), for its acquisition last year of Gumtree AU
- CBA will provide debt facilities for a $46 million term loan, a $2 million bank guarantee facility, and a $150,000 corporate charge card facility
- TMH CEO Tommy Logtenberg says the financial close is expected by the end of the month
- Mr Logtenberg added the loan note would be refinanced using the company’s existing cash reserves and the proceeds of the term loan facility
- Shares in TMH are down 1.45 per cent and trading at 34 cents at 3:00 pm AEST
The Market Herald (TMH) has secured a refinancing agreement with the Commonwealth Bank of Australia (CBA) for its acquisition last year of Gumtree AU.
CBA will provide debt facilities under a new secured facility agreement for a $46 million term loan, a $2 million bank guarantee facility, and a $150,000 corporate charge card facility.
TMH CEO Tommy Logtenberg said the financial close was expected by the end of the month.
Mr Logtenberg said the loan note would be refinanced using the company’s existing cash reserves and the proceeds of the term loan facility.
The deal is to refinance the vendor loan note between TMH and the seller in the Gumtree AU acquisition, Adevinta Oak Holdings.
Gumtree Australia will be the sole borrower under the new facilities which have a three-year maturity.
The facility agreement will include “a mechanism for the establishment of additional uncommitted facilities up to an aggregate of $20 million for the purposes of financing (in whole or in part) permitted acquisitions, growth capital expenditure and associated transaction costs”.
Shares in TMH were down 1.45 per cent and trading at 34 cents at 3:00 pm AEST.
