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Highlights
- Swoop executes an AU$32.1 Facilities agreement with Westpac Banking Corporation.
- The agreement will be valid for a term of five years.
- Certain security agreements have also been entered with Westpac to secure the debt incurred under these facilities.
The shares of Swoop Holdings Limited (ASX:SWP) were spotted trading a tad higher at AU$0.540 per share at 12:12 PM AEST on the ASX today (15 June). Today, the ASX-listed telecom company announced that it has signed an agreement with the Westpac Banking Corporation (ASX:WBC).
The share price of Swoop has fallen over 42% in last 12 months on the ASX. On the other hand, Swoop’s year-to-date share price has also fallen almost 70% (as of 12:10 PM AEST on the ASX today, 15 June).
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Details of Swoop’s agreement with Westpac:
Today Swoop announced that it had executed a Facilities Agreement worth AU$32.1 million with Westpac. Facilities worth around AU$$30.0 million will be available to fund permitted acquisitions and capex programmes and will be available for a term of five years.
Swoop’s agreement with Westpac is subjected to the following key terms:
An AU$20.0 million term loan facility for permitted acquisitions with a facility term of five years. This facility has specific drawdown timing requirements. If drawdowns are not made within the required timeframes, this tranche of the facilities will no longer be available for use.
An AU$10.0 million term loan facility allotted for capital expenditure and permitted acquisitions with a facility term of five years.
An overdraft facility (Revolving) worth AU$2.0 million for day-to-day working capital requirements.
A Corporate Card Facility worth AU$0.1 million for day-to-day corporate requirements.
The facilities are subjected to financial covenants and financial reporting obligations which are customary for facilities of this nature.
Any drawdowns made under the facilities will be subjected to a number of conditions precedent, which is customary for facilities of this nature.
Image source: © Terovesalainen | Megapixl.com
What did the management of Swoop say?
Alex West, the CEO of Swoop CEO believes that this is an ‘exciting’ time for Swoop to be able to work with Westpac by securing these facilities and combining them with its strong cash balance. This agreement further puts Swoop in a strong position in the current environment.
Also read: Swoop Holdings (ASX:SWP) to acquire dark iFibre’s fibre network biz
About Swoop:
Swoop Holdings Limited is an ASX-listed telecommunication firm which was formerly known as Stemify Limited. The company mainly deals with offering fixed wireless and wholesale network infrastructure with a high-performing national and international network. Swoop also offers services over the NBN fixed-line and fixed wireless networks across Australia to residential and SME customers who cannot connect with Swoop’s fixed wireless network.
Swoop is based out of both New South Wales and Victoria. The company currently holds a market capitalisation of AU$110.01 million. The company is known for operating under three brands- Swoop Wholesale, Swoop Business and Swoop Broadband.
