Cash Converters secures additional $50m in funding

Company News

by Kathy Skantzos

Cash Converters (ASX:CCV) has secured increased funding to support its loan book growth, with Fortress Investment Group contributing an additional $50 million.

The extended facility will take effect when payout conditions of pre-existing funding by Fleet Partners are seen through.

The original $100 million facility was entered into in March 2016.

The company said the increased facility of up to $150 million supports its strategic move to reduce its volume of lending in the small amount credit contract (SACC) market and increase its exposure to larger loans.

The increased facility with Fortress positions the company with sufficient funding for loan book growth through to the end of 2020 with a renewed 5-year term.

Shares in Cash Converters (ASX:CCV) are trading flat at $0.35.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.