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Yellow Brick Road has signed an expanded debt agreement to help fund its acquisition of Vow Financial and one other target.
The group announced yesterday that it had agreed to a $12 million debt facility with the Commonwealth Bank, which is due to expire in July 2017.
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This replaces the $5 million facility that was due to expire in June 2015.
Yellow Brick Road said the new debt agreement would help it fund two acquisitions, including that of Vow.
The $17.6 million Vow acquisition won approval from Vow’s shareholders last month, although it still needs to be signed off by Yellow Brick Road’s shareholders.
Yellow Brick Road announced in March that it was in exclusive talks to make three acquisitions: an aggregator – which turned out to be Vow – a mortgage manager and a lead generation business.
Meanwhile, the group also announced yesterday that it has agreed a five-year marketing agreement with shareholder Nine Entertainment Company.
The deal will give Yellow Brick Road discounted advertising across the Nine Network, as well as the websites and electronic direct marketing platforms of Ninemsn and Ticketek.
It is subject to several conditions, including the completion of the Vow acquisition.
Chairman Mark Bouris said the deal would give Yellow Brick Road “a major strategic advantage” in its plans to build a leading non-bank financial services group.
“The new arrangements will greatly assist the Yellow Brick Road group to executive its strategy by building brands and generating leads into those brands across their portfolios,” he said.
Yellow Brick Road reported a $3.6 million loss for the six months to 31 December 2013 and has recorded successive annual losses since 2007/2008.
[Related: $17.6m Vow acquisition “ticks all the boxes”]
