Wednesday, April 1, 2015

Source Financial Group’s (SRCF) Moneytech Finance Pty Ltd Enters Agreement for AUD$25M Offering

Moneytech Finance (“M Finance”), an indirect wholly owned subsidiary of Source Financial Group, last week signed a deal with FIIG Securities Limited in which FIIG agreed to act as lead manager and initial subscriber for M Finance’s AUD$25 million offering of Australian Dollar Subordinated Notes. It is anticipated that the offering will close April 10, 2015.

According to Source Financial’s recent 8-K filing, the offering was not registered in Australia and was made only to individuals and entities in Australia to whom it is lawful to make an offering of subordinated notes without disclosure under the Corporations Act of Australia. Source Financial currently does not intend to register or sell the subordinated notes for trading within the United States.

The subordinated notes will bear interest at a rate of 4.65% per annum plus the Bank Bill Swap rate, payable quarterly in arrears, due and payable in full in 2022.

Repayment of the subordinated notes has been guaranteed by Moneytech Limited, the corporate parent of M Finance Pty and Moneytech Services Pty Ltd. Moneytech Limited, M Finance and Moneytech Services, collectively the guarantors, are a direct or indirect wholly owned Australian subsidiary of Source Financial.

BNY Trust Company of Australia will serve as the trustee pursuant to a Note Trust Deed to be executed and delivered at closing. The subordinated notes will not be secured by liens on any assets of M Finance or the guarantors; Finance and the guarantors will grant a “negative pledge” under which they will agree not to grant any third party a lien on their assets.

M Finance currently has an asset-backed wholesale debt facility (“RPA”) with its senior financier. The borrowing limit under the RPA is currently AUD$50 million and subject to interim agreed upon limits determined by various tests and covenants. As at June 30, 2014, the total amount drawn against the facility was AUD$27,746,303. The facility has been renewed until December 31, 2015, and the interim agreed upon credit limit is currently AUD$40 million. Upon issue of the subordinated notes, the interim agreed upon credit limit will be reduced to AUD$25 million, with a minimum draw requirement of AUD$20 million.

Source Financial and its subsidiaries provide technology-driven financial solutions and services to consumers and businesses.

For more information on the company or its subsidiaries, visit www.sourcefinancial.com

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