Zepz has secured a new $165m debt finance package as the firm’s audited accounts head towards being eight months overdue.
The global payments group behind WorldRemit and Sendwave (International Remittance), has secured a $110m revolving credit facility led by HSBC Innovation Banking UK.
This forms part of a larger $165m growth financing package announced by Zepz today with HSBC Private Credit acting as the sole underwriter of a $55m term facility.
The facility incorporates an “accordion” feature, allowing the company, subject to lender approval, to request an increase of the revolving commitment by up to an additional $60m. Additionally, the revised facility provides for a term loan of $55m with a 30-month term. The facility is subject to certain financial covenants, including minimum EBITDA and adjusted quick ratio.
The revised facility replaces the old revolving credit facility that had been due to expire on 29 November 2024. In 2023, the prevailing interest rate on the facility was an eye-watering 14.73%, WorldRemit’s accounts show.
Barrie Morris, CFO at Zepz, said: “By lowering borrowing costs, this facility improves our financial flexibility and ensures we can continue delivering high-quality, cost-effective services.
“The additional capital allows us to strengthen our operations, supporting our long-term growth and commitment to our customers.”
The accounts for Zepz Technology Services Limited were due to be filed by 8 August 2024 but remain missing, according to Companies House, meaning the firm is likely to incur a fine for late submission.
According to the accounts of its parent company, WorldRemit Holdings, which were also filed late, the firm said it was “strongly capitalised and well positioned for continued growth.”
In June, Zepz raised $267m in a Series F funding round led VC firm Accel with participation from TCV and Leapfrog. The shares are entitled to a 14.5% annual dividend, accruing daily and compounding semi-annually.
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