Global payment solutions provider Splitit Payments has secured a receivables funding facility from Goldman Sachs Bank to accelerate its growth.
According to the key terms of the financing facility from Goldman Sachs, the lender has committed a investment of up to (A$197m) $150m, for a three-year term.
The payments firm has bagged this funding to support its business expansion.
The three-year revolving credit facility adds to Splitit’s balance sheet and is key to its capital management strategies for this year and the future.
It is expected to be used to raise the company’s gross margins over time.
In major markets, it will provide merchant funding and subject to legal due diligence, will provide a structure to support additional jurisdictions eventually.
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The deal also includes 13 million warrants with a strike price of A$1.30.
Based on its utilisation, these warrants will be issued in three equal tranches, each with an expiry of five years after the issue date.
On or about the first use of the funding facility by Splitit, the first warrant tranche will be issued.
Additionally, the deal includes other covenants, representations & warranties, and reporting obligations similar to a Receivables Warehouse Facility (RWF).
Splitit CEO Brad Paterson said: “This large committed facility from Goldman Sachs is a key pillar of our Merchant Sales Volume growth strategy.
“Demand from merchants in the US and Europe for our funded model has never been stronger, and coupled with our existing strong balance sheet, we now have the foundations in place to accelerate our growth plans whilst also driving improved margins.”
Back in August 2020, the card-based instalment payment solutions provider raised $71.5m in a private placement and share purchase plan (SPP).