The funds will be spent on the company’s growth strategy as well as to strengthen the balance sheet.
“New focused growth strategy”
Chief executive officer Pippa Leary said: “We are pleased to complete the debt capital raise.
“These new funds strengthen Swift’s balance sheet as we execute our new focused growth strategy.
“The capital will be used to retire existing debt facilities, for working capital purposes and to leverage our leadership in the mining and resources vertical and bringing profitable and scalable new products to the aged care market.”
Loan facility terms
The loan facility terms include an $8 million facility with a four-year termination post drawdown and a 10% interest rate to be paid every three months.
Other notable terms:
- No amortisation;
- PURE to have first ranking security overall assets of the Company and each of its subsidiaries;
- Prior to June 30 2020, covenants will be tested at the end of March (for the preceding three months) and at the end of June (for the preceding six months);
- From Dec 2020, trailing 6month EBITDA is tested in Dec and June; and
- A default will occur if the Company’s EBITDA declines by 40% or more versus its 2020 budget through to June 2020, or if EBITDA falls below $900,000 for a 6 month period commencing Dec 2020.
Swift may repay the facility during the term (subject to early exit fees which reduce annually and cease in the final year of the facility) with 26,666,666 detached warrants to be issued to Pure subject to Pure obtaining shareholder approval by January 31 2020.
Warrants will have an exercise price of 30 cents each and can be exercised up to the termination date of the facility.