Smart Parking Secures Debt Facility Agreement with HSBC

Key Highlights:

  • $10M AUD multicurrency revolving credit facility for general corporate purposes and permitted acquisitions, with a 3-year term.
  • $10M AUD multicurrency accordion facility, available upon request and subject to conditions, for additional corporate needs and acquisitions.
  • Other on-demand facilities including Letter of Credit and credit card facilities.
  • Interest rates are variable, and facilities are secured by all asset security from Smart Parking and some of its subsidiaries.
  • Covenants include Net Leverage Ratio, Interest Cover Ratio, and Minimum Tangible Net Worth requirements.

Melbourne, Australia – 27 November 2024 – Smart Parking Limited (ASX:SPZ) has successfully secured a $20 million AUD debt facility agreement with HSBC Australia, which will help position the company for future growth opportunities.

Debt Facilities Breakdown:

  1. $10M AUD Multicurrency Revolving Credit Facility – This facility is intended for general corporate purposes, as well as specific permitted acquisitions, with a term of three years.
  2. $10M AUD Multicurrency Accordion Facility – This facility will be available upon request, with certain conditions to be met, providing additional flexibility for future needs.
  3. Additional On-Demand Facilities – These include a Letter of Credit facility and a credit card facility, adding further liquidity options for the business.

Secured Facilities

The facilities are secured by all asset security granted by Smart Parking and some of its subsidiaries. The company has also provided guarantees for the facilities.

Covenants

The agreement includes standard financial covenants, including a Net Leverage Ratio, Interest Cover Ratio, and Minimum Tangible Net Worth requirement to ensure ongoing financial health.

Paul Gillespie’s Remarks:

Smart Parking’s Managing Director, Paul Gillespie, expressed enthusiasm about the deal, stating:
“We are delighted to successfully implement the HSBC facilities. The new facilities provide us with the cash reserves and debt capacity to take advantage of future opportunities as they arise. We’re excited to continue our growth journey in partnership with HSBC.”

This strategic move positions Smart Parking to capitalise on upcoming growth prospects while maintaining flexibility in its financing arrangements.