Payright (ASX:PYR) settles “transformational” funding package to pursue growth

• Payright (PYR) completes its settlement of funding package, comprising a $125 million warehouse facility led by Goldman Sachs and a $9.5 million capital raising
• Goldman Sachs fronted $100 million under the warehouse facility while mezzanine arranger iPartners put up another $18.75 million
• The $9.5 million capital raising was settled via convertible notes and a placement to shareholders
• The settlement places the company in a position to accelerate its growth strategy and fast track its path to profitability
• Shares in Payright were up 3.57 per cent at the close of trading on Tuesday to $0.14 each

Consumer financing business Payright (PYR) has completed its settlement of a funding package, comprising a $125 million warehouse facility settlement led by Goldman Sachs and a $9.5 million capital raising.

The warehouse facility, signed with Goldman Sachs as the senior lender and iPartners as a mezzanine arranger, provides funding of receivables.

Goldman Sachs fronted $100 million under the warehouse facility while mezzanine arranger iPartners put up another $18.75 million. Payright retains the remaining five per cent of the facility as an equity note.

Co-CEOs Myles Redward and Piers Redward said the settlement is a major milestone.

“The funding package is a strong validation of the Payright business model, being the underserviced, higher value, point-of-sale consumer finance market, and now provides us with the ability to scale the business at materially lower funding costs whilst maintaining an attractive loan-to-value ratio,” they said.

Benefits of signing the facility with Goldman Sachs include immediate lower cost of funding by approximately half, resulting in an annualised cash flow benefit of around $4.4 million.

This puts the company in a position to accelerate its growth strategy and fast track its path to profitability.

Payright has also secured $9.5 million through a capital raise via convertible notes offering and a placement to shareholders.

Funds raised will be used to facilitate the transition to the new warehouse facility, inclusive of one-off related costs, in addition to working capital and further investments in the business that will allow for future growth.

Shares in Payright were up 3.57 per cent at the close of trading on Tuesday to $0.14 each.