Important Milestone for Further Growth
In addition to the recently completed, oversubscribed share placement of $2.25 million, Parkway Corporate (ASX: PWN, FSE: 4IP) has secured, as announced, a credit line of up to $4 million from a specialized private credit fund. In total, Parkway now has a capital base of around $6.25 million.
The term loan financing was arranged with Amal Security Services Pty Limited as trustee for the Causeway Wholesale Private Debt Master Fund. Causeway is a boutique manager for private debt and alternative investments with managed and advised assets of approximately $600 million. The company has more than two decades of experience in providing private debt to emerging companies.
The successful completion of the financing package represents an important milestone in Parkway’s development and will support the acceleration of numerous strategic growth initiatives.
Aiming for Greater Financial Flexibility
The loan facility consists of a senior secured loan facility of $3 million and a separate acquisition facility of $1 million, intended to support potential future acquisitions. The initial loan term is 2 years, with the option for Parkway to extend the credit facility for an additional 12 months at its discretion.
Evolution Capital acted as the sole arranger and advisor for the establishment of the Term Loan Facility and will receive an arranger fee of 2.5% of the funds drawn (at full utilization), payable at the time of drawdown.
Managing Director Bahay Ozcackmak commented: “With the acquisition of Tankweld, we have created a growth platform that allows us to offer turnkey industrial solutions for both conventional and more innovative (based on Parkway technology) project applications. The acquisition of Tankweld has not only expanded our project delivery capabilities but also increased the size of our operational business and thus the corresponding working capital requirements. As an emerging company with ambitious growth plans, it is important to have access to growth capital, including in the form of debt. This also gives confidence to our various partners and customers in our capabilities. In this respect, expanding our capital base is an important milestone that will support our further growth. Access to capital markets allows us to explore ambitious project structures with our partners and customers, including potential Build-Own-Operate strategies. We expect that over time, as our business continues to grow, we will further expand and consolidate our working capital facilities, with larger and more cost-effective options.”
