The Commonwealth Bank of Australia has entered into an agreement with Firstfolio to provide a $23 million senior debt facility.
According to an ASX announcement by Firstfolio, the three-year term facility will be used to extinguish minor debts to ING and Adelaide Bank, pay out financing agreements to the vendors of e-Choice and Domain Financial Services, and retire $8.9 million from the balance of a loan owing to Welas Pty Ltd, a company associated with non-executive director, Tony Wales.
Drawdown of this facility will become available upon the satisfaction of conditions precedent.
Firstfolio chief executive Mark Forsyth said the new facility was an endorsement of the company’s strategy and growth prospects by a major commercial lender.
“It is another vote of confidence by a major bank this financial year,” Mr Forsyth said.
“This new funding line will strengthen Firstfolio’s capital footing and give us the flexibility to explore key growth initiatives with confidence.”
CBA joins join National Australia Bank, with a $5 million credit line through Advantedge, as institutional lenders to Firstfolio.
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