Openpay Group Ltd (ASX: OPY) has entered into a US$271.4 million asset-backed revolving debt facility with Goldman Sachs and mezzanine financing provided by Atalaya Capital Management.
The company’s US CEO and Global Chief Strategy Officer, Brian Shniderman, said the warehouse facility will enable Openpay to fuel its expansion into the US, with the transaction representing a key milestone for Openpay as it looks to facilitate transactions for merchants and consumers in the US and lays the groundwork to support growth in the region.
The key terms of the secured facility are: – committed facility of US$135.7 million – an additional US$135.7 million of uncommitted funding at the discretion of the lenders – 2 ½ year facility term, subject to customary termination rights In connection with the facility, 1,022,271 million warrants are to be issued to Goldman Sachs, with each warrant exercisable into one fully paid ordinary share in the company at a subscription price of $1.30428516 per warrant to adjustment. This represents approximately 0.73% of the current issued share capital of Openpay Group Limited on a fully diluted basis.
We are thrilled to work with Goldman Sachs and Atalaya who will now deliver the funding to enable our growth in the US at scale.” Mr Shniderman said.
“We will begin distributing BNPL in large volumes through major ecosystem partnerships like payments processors, and merchant aggregators requiring significant funding. This is precisely what we shared as our plan with investors, and all part of our six Pillar Strategy.
“This facility is now set to grow our US business at a greater scale for the global company through this exciting US launch going live this month.”