Harmoney (NZX:HMY): Why did it sign A$20 m corporate debt facility?

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Harmoney (NZX:HMY): Why did it sign A$20 m corporate debt facility?

 Harmoney (NZX:HMY): Why did it sign A$20 m corporate debt facility?
Image source: Sergey Nivens,Shutterstock

Highlights

  • Harmoney announced on Wednesday that it has inked a A$20 million corporate debt facility.
  • The facility has been taken to fast-track Australian receivables book growth.

Harmoney Corp Limited (NZX:HMY) announced on Monday that it has stepped in a A$20 million corporate debt facility through its subsidiary, Harmoney Australia Pty Ltd. This has been done to help the Company in fast-tracking Australian receivables book growth.

The debt facility will be primarily used for funding the junior notes in its warehouse funding arrangements, underwriting considerable further growth in receivables without the need for Harmoney to provide further equity.

Harmoney has speeded up both the shift to warehouse funding and lending growth in Australia since it went public in November last year. The total warehouse lending growth has risen to NZ$427 million in November 2021, up from NZ$194 million in November last year.

The facility has been organised and financed by OneVentures together with Viola Credit. The facility can be dragged down in 3 tranches over a 9-month period, with an opening A$10 million tranche drawdown on Monday.

On 29 December, at the time of writing, HMY was trading flat at NZ$1.9.

Bottom Line

The persistent ability of Harmoney to access corporate lending for financing growth of warehousing facilities shows its loan book quality and underwriting.

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