Sigma $500m finance
SIGMA Healthcare Limited yesterday announced a new $500m “Receivables Purchase Agreement” with Westpac, saying the facility would provide the company with significant additional funding options to continue its investment program and pursue future growth opportunities.
The new three-year financing deal is split into three tranches - a cash advance of $115m which expires 30 Nov 2019; an overdraft facility of $135m which expires 30 May 2020; and a cash advance tranche of $250m which expires 30 Nov 2021.
The facility will amortise in line with Sigma’s expected return of working capital from the exit of its Chemist Warehouse contract.
Sigma CFO Iona MacPherson said the line of credit provided Sigma with a strong funding platform for the next stage of its corporate transformation, giving it flexibility to meet major investments in distribution centres and IT.