Butn (ASX:BTN) - Co Founders and Executive Directors, Rael Ross (left) and Walter Rapoport (right)
Co Founders and Executive Directors, Rael Ross (left) and Walter Rapoport (right)
Source: The Adviser
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Business lender Butn (BTN) has secured $8.5 million in extra debt funding, by securing additional Class A Notes from Noteholders under its existing 2018-1 bond
  • The Notes have a maturity term of October 29 2023 and an interest rate of 6.2 per annum, with Class C Equity Notes to be issued to 15 per cent of the total bond amount
  • BTN will use the extra funding to purchase eligible receivables, with the company estimating it’ll support over $50 million of additional annual origination capacity
  • Company shares are trading up 12.9 per cent at 35 cents each

Business to business (B2B) funding innovator Butn (BTN) has secured $8.5 million in extra debt funding.

The lender announced on Wednesday it had secured additional Class A Notes from Noteholders under its existing 2018-1 bond.

BTN said the offer was strongly supported by noteholders and ended early after being upsized.

The Class A Notes all have a maturity date of October 29 2023, with early call dates on October 29, 2022, and April 29, 2023.

They also attract an interest rate of 6.20 per cent per annum, while additional Class C sponsor Equity Notes will be issued to 15 per cent of the total bond amount.

The extra funds will help Butn purchase eligible receivables, with the company estimating it’ll support over $50 million of additional annual origination capacity at a rate 200 basis points below its FY21 weighted cost of debt.

Co-founder and Co-CEO Rael Ross said the cash injection had positioned them for strong growth over 2022.

“We continue to deliver on our debt restructuring plans, achieving the objectives of reducing funding costs, increasing headroom capacity, and extending funding flexibility to underpin further growth,” he said.

“The funding supports over $50 million of additional annual origination capacity and has been priced substantially below our historical weighted cost of debt, reflecting strong investor appetite for Butn’s quality client book and lending characteristics.”

“We are well-positioned to deliver growth for our customers and shareholders in CY2022.”

Butn shares were trading up 12.9 per cent at 35 cents each at 2:21 pm AEDT.

BTN by the numbers
More From The Market Online
The Market Online Video

ASX Market Close: IT stocks drag index lower | January 15, 2025

The local bourse gave up early gains and slipped into the red in afternoon trade, and…
Image of gold chips

Great Boulder de-risks Side Well project with 98.7% gold recovery for Mulga Bill

Great Boulder Resources Ltd has shown that high gold recoveries with moderate levels of cyanide consumption…
Lithium ion battery with the Brazilian flag

Gold Mountain shares up 50% on drill target definition at Salinas II lithium play

Gold Mountain Resources Ltd has recorded a strong share market performance on the news based on…
The Market Online Video

ASX Market Update: Bourse inches higher after paring gains | January 15, 2025

The Discretionary sector has been leading the market higher, up 0.6%, followed by Real Estate, up…