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Highlights:
- Splitit has revised its terms of Goldman Sachs Facility deal announced in February 2021.
- The tech services firm is expected to save around US$5.3 million in a two-year tenure.
- Shares of Splitit were trading around 4% lower at 1:00 PM AEST today.
Buy now, pay later tech services firm, Splitit Payments Limited (ASX:SPT), today (August 1, 2022) shared via an ASX announcement that it has signed a modification to its contract for a US$150 million receivables funding facility with Goldman Sachs Bank USA.
The original Goldman Sachs Facility deal was announced on 5 February 2021.
As per the ASX announcement made by Splitit, the new facility terms are likely to save the company up to US$5.3 million in a two-year period. This is inclusive of the volume and decreased interest rates related to the global merchant expansion. Even after the exclusion of global merchant expansion savings, the interest savings would still be around US$2.1 million during the same two-year tenure.
Meanwhile, Splitit’s shares were spotted trading 3.921% lower at AU$0.245 apiece at 1:00 PM AEST.
The changes made to the original GS Facility Agreement feature:
- Now the exercise price for each of the 13,000,002 warrants issued will be reduced from US$1.30 to US$0.18.
- Lowered interest rates and fees valid from 1 March 2022, and additional declines to interest rates for the specific global merchant plans.
- The extension of the Facility term, earlier from -4 years will now expire in February 2025.
Splitit: Latest developments
- Splitit Payments released its June quarter report recently as per which its revenues have fallen 13% year-on-year to US$2.2 million. The firm’s Merchant sale volumes, however, rose 4% to US$94 million.
- The company stated its net transaction margins have increased and expenditure has decreased.
- Dan Charron has been appointed as Independent Non-Executive Director while CEO Nandan Sheth will now serve as the Managing Director.
Split’s share price performance on ASX
Splitit shares, in last five trading days, have gained 16.67% and have surged more than 75% in last one month. However, in last one year, the share price has lost 51% and on Y-T-D basis, the shares have plunged 12.50%.
