Lenders commit $640 million to MYOB

Lenders commit $640 million to MYOB

MYOB CEO tips possible market listing after strong growth and debt refinancing negotiation

CEO of accounting software vendor, MYOB, Tim Reed, has hinted at a possible market listing in the future following strong business growth and preparing a senior debt refinancing negotiation.

Reed said its strong business growth, financial performance and favourable credit markets presented an opportune time to negotiate greater flexibility in debt arrangements, lowering the cost of its debt and possible market listing in the future.

The refinancing negotiation has been supported by existing lenders, committing $640 million, and may result in favourable pricing and flexible terms for MYOB.

“To that end we are actively negotiating with a syndicate of banks to refinance our senior debt and are close to finalising the arrangement,” Reed said.

This comes on the back of strong growth for the vendor, revealing it has reached a new record of 100,000 online subscribers since the launch of its AccountRight cloud accounting product about two years ago.

MYOB revealed that the percentage of clients signing on for an online subscription has passed 70 per cent of total registrations, up from less than 20 per cent two years ago.

“Achieving rapid growth to over 100,000 online subscribers within two years of launching our flagship AccountRight cloud accounting solution has been a key achievement. Of equal significance is the way new MYOB clients are adopting our cloud solutions, with over 70 per cent now choosing one of our cloud accounting solutions,” Reed said.

Bain Capital managing director, Craig Boyce, said it was pleased with MYOB’s growth and performance, and the time was right to structure for future growth.

Bain Capital purchased MYOB in August 2012 from Archer Capital for $1.2 billion.

In 2009, MYOB ceased trading shares on the ASX, after it was purchased by Manhattan Software (an outfit created by investment firms Archer Capital and Harbourvest Partners).

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MYOBTim Reed

Brand Post

Show Comments