Swoop secures $32.1 million loan to fund further acquisitions

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Swoop secures $32.1 million loan to fund further acquisitions

Swoop has secured a $32.1 million facilities agreement with Westpac covering acquisitions, capital expenditure, and working capital loans. 

In an ASX announcement, Swoop said $20 million of the loan would fund acquisitions “permitted” by Westpac under a “pre-established criteria”, and another $10 million could be used for ether capital expenditure or permitted acquisitions. 

Other acquisitions outside the agreed criteria could be made with Westpac’s consent, the fixed wireless and wholesale network infrastructure provider said. 

Swoop chief executive officer Alex West said, “With the changes in the macro-economic conditions, we have been prudent over the last six months to ensure that we undertake a disciplined approach to acquisitions and only pursue those opportunities that meet our strict guidelines, and will continue to do so with this additional firepower at our disposal.”

This year, Swoop acquired Sydney-based, dark fibre network company Luminet for $8 million, Adelaide-based dark fibre specialist iFibre for $1.5 million, 

Last year, Swoop acquired Sydney-based wholesale voice services provider Voicehub for $6 million, Newcastle, NSW-based telco Countrytell for $4.2 million, regional SA-based wireless broadband provider Beam Internet for $6.7 million, Morwell, Victoria-based broadband network operator Speedweb for $1.75 million, and Warragul, Victoria-based Anycast Networks and DCSI Broadband and Perth-based fixed wireless network operator Community Communications for an undisclosed sum

West added, “Securing these facilities and combining them with our already strong cash balance puts us in a strong position in the current environment.”

In addition to the loans for acquisitions and operating expenditure, the agreement includes a $2.0 million overdraft facility for day-to-day working capital requirements and $0.1 million corporate card facility for day-to-day corporate requirements.

Swoop said that the facilities were subject to financial covenants and financial reporting obligations. And that any drawdowns made under the facilities would be subject to a number of conditions precedent, both of which were customary for facilities of this nature

In Febuary, Swoop reported $23.9 million in revenue for the first half of the financial year, up 62 percent on the last half-year. 

However, the company's statutory loss finished at $2.9 million for the half-year ended 31 December 2021, which the company attributed to the cost of acquisitions and employee performance benefits.

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