Splitit (ASX:SPT) - Former CEO, Brad Paterson
Former CEO, Brad Paterson
Source: Splitit
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Splitit (SPT) has secured a US$150 million (roughly A$197.21 million) Receivable Warehouse Facility to support U.S. and European growth
  • Signed with Goldman Sachs Bank USA, the three-year facility adds to an already strong balance sheet and doubles the size of the company’s existing credit facilities
  • It’s expected to provide merchant funding for the company’s major markets and a structure to facilitate additional jurisdictions over time
  • 13 million warrants will be issued in three equal tranches, with each warrant exercisable at a price of $1.30 over a period of five years
  • Splitit is up 3.45 per cent to $1.50 per share

Splitit (SPT) has secured a US$150 million (roughly A$197.21 million) Receivable Warehouse Facility to support U.S. and European growth.

As a key part of the payment solution provider’s 2021 capital management strategy, the three-year revolving facility was signed with Goldman Sachs Bank USA, doubling the size of the company’s existing credit facilities.

With lower costs than Splitit’s other funding measures, the facility will be used to increase the company’s gross margins, fund merchants in major markets and provide a structure to facilitate additional jurisdictions.

According to the terms of the facility, 13 million warrants will be issued to Goldman Sachs in three equal tranches, exercisable at a price of $1.30 per share. Each tranche will expire five years after their respective issue date, with the first to be issued upon Splitit’s first use of the facility.

“This large committed facility from Goldman Sachs is a key pillar of our Merchant Sales Volume growth strategy,” said Brad Paterson, CEO of Splitit.

“Demand from merchants in the U.S. 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,” he added.

The financing follows a successful fourth quarter of 2020, during which the company saw its merchant sales volumes grow 218 per cent year-over-year to US$86.3 million (roughly A$112.73 million), equivalent to the sales volumes processed in the whole of 2019.

Gross revenue soared to US$2.9 million (roughly A$3.79 million), representing a 359 per cent increase compared to the same period in 2019 and a 22 per cent increase compared to the prior quarter.

Splitit is up 3.45 per cent to $1.50 per share at 10:42am AEDT.

SPT by the numbers
More From The Market Herald
Gratify (ASX:GTI) - Executive Chairman, Iain Dunstan

" Gratifii (ASX:GTI) sees revenue growth for third consecutive quarter

Loyalty and rewards company Gratifii (ASX:GTI) has seen its revenue growth exceed the forecast for the…
Linius Technologies (ASX:LNU) - Incoming CEO, James Brennan

" Linius Technologies (ASX:LNU) undertakes share placement to support growth plans

Linius Technologies (ASX:LNU) undertakes share placement to support growth plans
Weebit Nano (ASX:WBT) - CEO, Coby Hanoch

" Weebit Nano (ASX:WBT) nearing commercialisation

Weebit Nano (ASX:WBT) says it made significant in-roads towards commercialisation during its December quarter which was…
Delta Drone International (ASX:DLT) - CEO, Christopher Clark

" Delta Drone (ASX:DLT) selling drone safety business

Delta Drone International (ASX:DLT) has signed a deal to sell its drone safety business.