IDT Australia Limited (ASX:IDT) Secures $20 Million Loan Facility
Loan Facility Finalised
IDT Australia Limited (ASX:IDT) has completed the settlement of a $20 million asset-based loan facility with Scottish Pacific Business Finance Pty Ltd (ScotPac). This financing arrangement is designed to provide IDT with financial flexibility to support its expanding sales pipeline and to capitalise on recent contract wins.
Operational Growth and Financial Performance
The new loan facility replaces IDT’s previous $4.7 million loan from the National Australia Bank, indicating a strategic commitment to scaling operations. IDT reported a remarkable 91% year-on-year increase in operating revenue, totalling $12.3 million for FY24. Additionally, there was an 82% surge in unaudited total revenue to $10.4 million in 1HY25 compared to the same period last year, positioning the Company for continued growth in the financial year and beyond.
Facility Terms and Conditions
The ScotPac facility is structured on standard commercial terms, featuring an initial term of 36 months, with the potential for extension subject to mutual agreement. The interest rate is set at 10.60% per annum, based upon ScotPac’s variable base rate of 8.35% plus a 2.25% margin. The facility is secured against IDT’s assets, including property, equipment, and receivables, and includes covenants requiring appropriate insurances over the assets.
Executive Comments
The Board expressed appreciation to Findex Corporate Finance for their support in securing this facility, which underscores IDT’s strategy to meet increased demand and expand market opportunities both locally and internationally.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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