MYOB is negotiating with a syndicate of banks to refinance its senior debt. CEO Tim Reed says it is close to finalising an arrangement.
“With continued strong financial performance and favourable credit markets it is an appropriate time to negotiate greater flexibility in debt arrangements, lowering the cost of out debt and building in the flexibility for a possible market listing in the future,” he says.
MYOB says it has surpassed a record client milestone of 100,000 online subscribers. This follows previously disclosed information in MYOB’s half-year results and investor presentation, where it posted a record first half result, with revenue growth of 21 per cent and EBITDA growth of 29 per cent achieved.
The 100,000 online subscribers milestone has been achieved in under two years from launch of the flagship AccountRight cloud accounting solution. MYOB says that the percentage of new clients that are taking out an online subscription has passed 70% of total registrations, up from less than 20% two years ago.
Reed says the refinancing negotiation has been well supported by existing lenders with a commitment for $By 640M, and is likely to result in more favourable pricing and more flexible terms for MYOB.