Hills secures new financing
- 02 May, 2016 10:31
ASX-listed technology distributor, Hills Limited (ASX:HIL) has secured new finance facilities to help reach its short, medium and long term business goals.
The new facility includes a $36 million, five-year debtor finance facility originated through Assetsecure and a $15 million, multi-tranche senior secured debt facility from the Commonwealth Bank that involves $10 million for 18 months and $5 million for 12 months.
“The five-year debtor finance facility suits Hills as a value added technology distribution and health business in that it provides direct funding for the required investment in working capital over the longer term,” Hills CFO, Gareth Turner, said. “The company’s debtors’ ledger is well-managed with the majority of the book being covered by trade credit insurance. This makes it the most efficient and effective means of obtaining longer term financing.”
Since last year, Hills CEO, Grant Logan, said it was looking for new facilities that were better fit-for-purpose for the company in terms of its size and nature.
“We are pleased to now have the terms of our financing facilities locked away for the short, medium and longer term,” Logan said.