ZIP CO LIMITED Zip Co Limited announced a number of updates in relation to its funding facilities and capital structure which collectively strengthen Zip's balance sheet, provide additional funding diversification, extend duration and further simplify the Company's capital structure to support ongoing profitable growth. Key points: Corporate Facility: Zip has executed an agreement for a new $150.0 million corporate debt facility which will refinance its existing corporate debt of $90.0 million, CVI Convertible Notes:; US receivables funding: Zip has executed an agreement to refinance Zip's USD 225.0 million facility for three years to December 2026; AU receivables funding: Zip has successfully refinanced Zip's Series VFN No. 2 facility in the Zip Master Trust, extending the facility to March 2025.
Corporate Facility: Zip has executed an agreement for $150.0m to refinance its existing corporate debt with funds managed by Ares Management Corporation ("Ares"), a global alternative investment manager, providing corporate funding certainty, diversification and duration to the Company. Proceeds from the facility will be used to repay Zip's existing corporate facility, fund the cash component of the incentivised conversion of the outstanding CVI Notes, and provide additional liquidity to support growth. The term of the facility will be four years, with the option at Zip's discretion to refinance or repay the facility prior to maturity.
US receivables funding: Zip US has successfully executed an agreement to refinance its receivables funding facility of USD 225.0 million, providing ongoing undrawn and available capacity to fund receivables growth. The new facility will be provided by Victory Park Capital and has a three year term to December 2026. AU receivables funding: Following the successful $300.0 million securitisation issue in November 2023, Zip also completed the refinancing of $143.7 million of notes under VFN Series No.
2 in the Zip Master Trust earlier this month, with strong support from existing and new investors. This extends the facility to March 2025.
