Paper merchant Spicers has secured $30 million in new financing from ASX-listed business lender Scottish Pacific Business Finance.
The company, formerly PaperlinX, told the ASX in a statement: This new financing facility for the Australian operations provides funding up to a facility limited of $30 million, and is for an initial 2-year term to November 2019. It replaces a similar receivables backed financing facility, which was due to expire in March 2018.
“Completion of this refinancing provides a facility on more flexible and covenant-free terms for Spicers,” said David Martin, Spicers CEO. “We look forward to forming a successful and production partnership with our new financing partner, Scottish Pacific.”
Spicers chairman Jonathan Trollop told last week’s annual general meeting that the refinancing of the Australian business finance facility was related to the company’s settlement earlier this year of a long-running dispute with its former PaperlinX shareholders.
“Without question the single most important matter has been the restructuring of the company’s balance sheet following implementation of the scheme of arrangement approved in June 2017,” said Trollop. “I would like to acknowledge the efforts of all of those involved in this process.
“Firstly, it has placed the company on a very solid financial footing. This is already evidenced in various of the company’s activities. These include a reappraisal of the credit standing of the company, and reflected in improving commercial terms with commercial partners such as credit insurers, our suppliers and our financiers.”
Spicers posted a statutory profit after tax of $1.7 million for the 2017 financial year, on sales revenue of $380.7 million from operations in Australia, New Zealand and Asia.
Spicers currently has 420 employees working across five countries and 19 locations.