IDT Australia (ASX:IDT) finalized the settlement of a AU$20 million asset-based loan facility with Scottish Pacific Business Finance, according to a Friday Australian bourse filing.
The facility carries an interest rate of 10.60% per annum, based on Scottish Pacific's variable base rate of 8.35% plus a 2.25% margin.
It has an initial term of 36 months, with the potential to roll into an ongoing term, subject to mutual agreement. It is secured against a portfolio of the firm's assets, including property, equipment, and receivables.
The facility will allow the firm to support its sales pipeline and capitalize on recent contracts, the filing added. It replaces its current AU$4.7 million facility with the National Australia Bank(ASX:NAB).
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.