Payright (ASX:PYR) signs $125m warehouse funding facility coupled with $9.5m capital raise

Henslow is pleased to have acted as Joint Lead Manager (alongside MST Financial) to Payright (ASX:PYR) on their recent $9.5m capital raise. The raise was structured as a $1.5m Placement and $8.0m Convertible Note issue. The Placement was priced at $0.18 per share, representing a 20% premium to the last close price ($0.15) and 36% premium to the 5-day VWAP.

The capital raise was undertaken concurrently with the signing of a transformational $125m warehouse funding facility with Goldman Sachs as the senior lender and iPartners acting as mezzanine arranger. The warehouse facility lowers Payright’s average cost of funds by approximately 50% to around 5.5%, resulting in improved cash flow of ~$4.4m annually based on current receivables balance (~$90m as of December 2021). Payright now have a clearly defined pathway to profitability which is expected to be achieved with a receivables balance around $200m.

Proceeds from the capital raise will be used to establish the warehouse facility including relevant transition costs and liquidity reserve requirements along with provide sufficient growth and working capital.

Payright is an embedded point-of-sale consumer finance provider, offering real time credit assessment and decisioning at the time of a transaction with average loans of $3.5k (and up to $20k) and terms extending up to 5 years. Payright targets sectors that have traditionally been underserviced by other finance providers including home improvement, education, photography, and health and beauty.

Henslow has a long-term relationship with Payright, advising on several of their equity and debt raisings prior to them becoming a publicly listed company. We look forward to building upon our relationship as they continue their progression toward profitability and becoming an established point-of sale provider for larger ticket consumer financing.

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