Payright (ASX: PYR) decides on the “transformational” financing package to achieve growth – The Market Herald

• Payright (PYR) is finalizing a $ 125 million funding package led by Goldman Sachs and raising $ 9.5 million in capital
• Goldman Sachs allocates $ 100 million for warehouse, and iPartners mezzanine arranger lays out another $ 18.75 million
• The $ 9.5 million capital raising was settled through convertible notes and shareholder placement
• The settlement allows the company to accelerate its growth strategy and accelerate the path to profitability
• At the close of trading on Tuesday, shares of Payright rose 3.57 percent to $ 0.14 each

The consumer finance company Payright (PYR) has completed a settlement of a financing package that includes a $ 125 million warehouse settlement under Goldman Sachs and a $ 9.5 million capital raising.

The warehouse, signed with Goldman Sachs as a senior lender and iPartners as a mezzanine arranger, provides receivables financing.

Goldman Sachs has donated $ 100 million to the warehouse, and the iPartners mezzanine arranger has donated another $ 18.75 million. Payright retains the remaining five percent of the facility as equity.

Co-CEOs Miles Redward and Pierce Redward said the settlement was an important milestone.

“The financing package is a strong testament to Payright’s business model, being an underserved consumer finance market with a higher cost, and now enabling us to scale the business at significantly lower financing costs while maintaining an attractive credit-to-value ratio.” They said.

The benefits of signing the facility with Goldman Sachs include an immediate reduction in the cost of funding by about half, bringing the annual cash flow income to about $ 4.4 million.

This allows the company to accelerate its growth strategy and accelerate the path to profitability.

Payright also provided $ 9.5 million through a capital increase through the placement of convertible banknotes and the placement of shareholders.

The funds raised will be used to facilitate the transition to the new warehouse, including one-time costs, in addition to working capital and further investment in the business, which will allow development in the future.

At the close of trading on Tuesday, shares of Payright rose 3.57 percent to $ 0.14 each.