zipMoney, the Australian point-of-sale credit and payments provider, has agreed to terms on a $200m securitisation warehouse programme for its consumer receivables. The facility comes from one of Australia’s “big four” banks, but the identity of the bank has not yet been revealed. While key terms have been agreed to, the deal is not yet complete, which is why the name of the bank has been withheld.
If all goes according to plan, the facility will be operational in the fourth quarter of this year, and will be used to refinance half of the existing Victory Park Capital facility, which was inked in December 2015. In the meantime, zipMoney will increase the size of the $108m Victory Park facility to $140m, with the option of increasing it again to $200m in the future.
Commenting on the impact of the “big four” facility, zipMoney CEO and managing director Larry Diamond said that it would “approximately halve the weighted average cost of capital” on the company’s loan book.
zipMoney uses big data to deliver real-time responses across a range of industries in Australia, including the retail, education, health and travel sectors. The company listed on the Australian Stock Exchange in September 2015, raising $5m. It then raised a further A$20.6m via a share placement in the summer of last year, in part to finance the acquisition of personal finance management software Pocketbook Holdings Pty Ltd. zipMoney made a loss of over $7m in the last financial year.
Diaomond called the new $200m facility is a “transformative step” for the company.