Fintech lender MONEYME secures $125m funding facility
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The news: B-Corp digital lender MONEYME has secured a $125 million funding facility with alternative asset investment platform iPartners.
The numbers: The initial commitment and drawdown will be $65 million with a further $60 million available on an uncommitted basis.
Its shares were up 1.21% to $17 cents by 12pm AEDT and over the past 12 months has surged 108.75%.
The context: The facility will be used to refinance MONEYME’s existing corporate debt with Pacific Equity Partners on what the lender said is substantially better terms. It will also fund working capital and enable loan book growth.
The structuring adviser on this transaction was Neu Capital, with Gilbert + Tobin and Hamilton Locke acting as legal advisors for MONEYME and iPartners.
MONEYME targets customers with above average credit profiles with niche products including car and personal loans and credit cards. The lender promises near real time credit decisions to loans that “settle in minutes”.
As a lender which does not take deposits it funds itself from raises and debt facilities.
What they said: MONEYME co-founder, chief executive and managing director Clayton Howes said securing the facility is a significant step forward for the company's future and growth ambition.
“The (further) $60 million is available on a non-committed basis to unlock significant loan book growth over the next few years,” he told Capital Brief.
“Further economic advantages are expected to be gained at a time when the RBA reduces rates, as this facility has a variable base reference rate.
“Importantly, iPartners are aligned with our strategy and long-term objectives. They bring sector expertise, scalable resources, and a track record of backing growth businesses. Their partnership is a strong endorsement of what we are building and where we are headed.”
iPartners’ co-founder and CEO Travis Miller said MONEYME’s “efficient approach to transaction execution has been refreshing and aligned nicely with the iPartners style of doing business”.
The source: ASX announcement
