- Tesserent (TNT) has secured refinancing with the Commonwealth Bank of Australia (CBA), effectively replacing existing debt facilities of $35 million with Pure Asset Management
- CBA will provide a further market rate loan of up to $20 million to be used to fund cash consideration payments and potential acquisitions
- TNT says the new arrangements will result in a notional interest saving of over $6 million on drawn debt facilities over the next three years
- The new partnership will see Tesserent consolidate its banking from 29 accounts across six banks, to a single banking platform and centralised function to increase efficiency
- Shares in Tesserent are trading 9.52 per cent higher at 11.5 cents at 11:46 am AEST
Tesserent (TNT) has secured refinancing of its existing debt facilities with the Commonwealth Bank of Australia (CBA).
The refinancing has resulted in a replacement of its existing debt facilities of $35 million previously provided by Pure Asset Management (PAM), with a new market rate loan (MRL) provided by CBA.
CBA will also provide a further MRL of up to $20 million to be used to fund cash consideration payments on current or future acquisitions.
CBA will also provide ancillary facilities of $4 million to cover bank guarantees, foreign exchange and corporate cards for the Group.
Tesserent said the new financing arrangements will result in a notional interest saving of more than $6 million on drawn new debt facilities over the next three years.
TNT Chairman Geoff Lord said the agreement with CBA marks a “key milestone” in the growth and evolution of the Tesserent business and signifies the company has achieved stability and maturity to secure funding from a leading financial institutions.
Furthermore, the new partnership will see Tesserent consolidate its banking arrangements, taking its banking from 29 accounts across six banks, to a single standardised banking platform and centralised treasury management function.
This will increase efficiency as part of the business’ operational integration objectives.
The company confirmed the refinancing and early repayment of the PAM facilities will incur a one-time exit fee of $1.75 million.
Upon completion of the refinancing, the remaining value of unamortised warrants on the balance sheet is $7.7 million, and this will be recognised as a one-off non-cash expense below the earnings before interest, tax, depreciation and amortisation (EBITDA) line in FY22.
Tesserent expects to report a record year for the third year in a row of turnover growth of over 60 per cent and EBITDA growth of over 100 per cent for FY22 compared to FY21.
Shares in Tesserent were trading 9.52 per cent higher at 11.5 cents at 11:46 am AEST.