IDT Secures new loan Facility with ScotPac
| Stock | IDT Australia Ltd (IDT.ASX) |
|---|---|
| Release Time | 20 Dec 2024, 10:33 a.m. |
| Price Sensitive | Yes |
IDT Secures new loan Facility with ScotPac
- IDT secures $20 million asset-based loan facility with Scottish Pacific Business Finance
- Facility to support IDT's growing sales pipeline and recent contract wins
- Replaces IDT's current $4.7 million facility with National Australia Bank
IDT Australia Limited (ASX: IDT) has secured a $20 million asset-based loan facility with Scottish Pacific Business Finance Pty Ltd (ScotPac), which will provide IDT with the financial flexibility to support its growing sales pipeline and capitalize on recent contract wins, positioning the Company for continued growth. The ScotPac facility replaces IDT's current $4.7 million facility with the National Australia Bank and underscores IDT's strategic commitment to scaling its operations in response to increased demand and expanding market opportunities in Australia and internationally. IDT reported a 91% Year-on-Year jump in operating revenue to $12.3 million for FY24, and a 70% increase in total unaudited revenue to $5.2 million in Q1FY25 over the same period last year - positioning the Company to deliver further growth in the current financial year and beyond. The ScotPac facility is structured on standard commercial terms with a facility amount of $20 million, an initial 36-month term with potential to roll into an ongoing term, and a discount charge (interest rate) of 10.60% per annum, based on ScotPac's variable base rate of 8.35% plus a 2.25% margin. The facility is secured against a portfolio of IDT's assets, including property, equipment, and receivables, and the Company is required to hold appropriate insurances over the assets and provide updates on statutory taxation obligations and amounts due to the Australian Taxation Office.
The establishment of this loan facility comes at a key growth juncture for IDT and will bolster the company's position as a leading manufacturing partner in the pharmaceutical and biotech sectors. The financial strength ensures IDT has the resources necessary to drive its growth strategy, fulfill its contracts efficiently, and deliver long-term value to its shareholders.