Yellow Brick Road has entered into a detailed credit-approved term sheet with Commonwealth Bank of Australia for a new debt facility.
The CBA funding will replace YBR’s existing group facility of $5 million, which was not due to expire until 30 June 2015, according to yesterday’s ASX statement.
The new facility includes a bill facility limit of $12 million and an additional $1.835 million for existing/new ancillary overdraft, bank guarantee and corporate credit card facilities for a term of three years.
According to an ASX statement, the purpose of the funding is “to assist YBR in funding two intended acquisitions, including that of Vow Financial Holdings Pty Ltd previously announced, plus providing additional working capital and ancillary banking facilities”.
On May 26 Mortgage Business reported YBR will acquire a mortgage manager and a mortgage comparison website by the end of the financial year.