Series 7 Loan Notes to accelerate growth of Payright loan book

Devizo Finance Pty Limited (Devizo Finance), a wholly owned subsidiary of Payright Limited (ASX: PYR) (‘Payright’ or ‘company’), has secured an exclusive agreement with iPartners Nominees Pty Ltd (iPartners) for them to act as Placement Manager for an additional Series of Loan Notes pursuant to Payright’s Loan Note funding programme.

The new Series 7 Senior Pool A Notes will have an aggregate face value of up to $20 million and will be drawn progressively by Devizo Finance to fund Payright’s loan book as part of the company’s strategy to drive continued growth of its customer base and merchant partner portfolio.

The Series 7 Loan Notes will attract a reduced interest rate relative to the recently completed and fully subscribed Series 6 raising of $7.0 million, for which iPartners also acted as Placement Manager.

In addition, Devizo Finance NZ Limited, another Payright wholly owned subsidiary has reached agreement with iPartners to act as Placement Manager for a Note facility to accelerate Payright’s loan book growth in New Zealand. NZ Series 1 Loan Notes will have an aggregate face value of up to NZ$3 million, and will also be drawn progressively in accordance with customer and merchant demand.

Based on Payright’s ‘Merchant First’ philosophy, the company’s merchant partner network has grown steadily to some 2,400 merchant locations across Australia and New Zealand spanning retail, home improvement, health & beauty, photography, education and the after-market automotive sectors.

Payright Co-CEO, Myles Redward, said: “The further extension of the company’s Loan Note programme will provide an enhanced runway for the business to keep building on the strong growth in merchant partners and customer volumes across our chosen industry sectors.”

Payright is a provider of choice for higher-value, ‘considered’ buy now pay later (BNPL) purchases of between $1,000 and $20,000, with an average transaction value of approximately $3,000 – a key point of difference in a rapidly growing BNPL sector.

Co-CEO, Piers Redward, said: “The injection of loan book funding for Payright’s New Zealand operations is also an important part of our efforts to build on the exciting progress we are making in the NZ market.”

Founder and Managing Director of iPartners Travis Miller said “We are delighted to follow on the successful Series 6 Loan Note raising by assisting Payright with the establishment of its Series 7 raise, and to also launch its New Zealand Loan Notes programme.

In conjunction with its focus on merchant acquisition, the company’s customer acquisition strategy saw it deliver strong growth in the December quarter with gross merchandise value (GMV) climbing to $20.6 million (up 84% versus the June quarter) across Australia and New Zealand and total customers growing to more than 42,000 as at 31 December 2020.