Adore Beauty Refinancing Debt Facilities
Key points
- Increased total facility limit to $25.2 million
- Maintained existing lender, CBA
- Incorporates $17M working capital facility
- $8M asset-backed loan for new NDC
Full summary
Adore Beauty Group Limited (ASX: ABY) has successfully refinanced its debt facilities with its existing lender, the Commonwealth Bank of Australia (CBA). The new three-year agreement increases the Group's total facility limit to $25.2 million, up from $18.2 million. The refinancing includes a $17 million working capital facility and an $8 million asset-backed loan for the new National Distribution Centre (NDC). The new facility's size, structure, and covenant flexibility reflect the Group's increased scale, new omni-channel footprint, and the soon-to-be-completed development of a semi-automated NDC. CEO Sacha Laing emphasized the expanded debt facility's flexibility to support current and future working capital needs.
Outlook
Adore Beauty Group anticipates the new facility will support ongoing inventory needs and growth initiatives.
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