Murray Cod Australia (ASX:MCA) has secured $43 million in funding from Westpac and completed the purchase of a property adjoining its Bilbul site, near Griffith, New South Wales.
The financing includes a $30 million term loan, a $10 million overdraft facility and a $3 million equipment financing facility. According to MCA, the funds will be used to refinance an existing $20 million facility with iPartners, support the purchase of the new property, complete capital works at Stanbridge and increase working capital to increase fish stocks in view of future harvests.
The term loan has a three-year maturity and the company’s land and water interests, as well as current and future assets, serve as collateral. MCA expects the facilities to be in place by the end of December.
CEO Ross Anderson described the deal as “an excellent financing solution for our business”, highlighting the due diligence process carried out by Westpac and the interest savings it would generate. “The lower interest rates offered by Westpac are expected to save more than $1 million a year in interest on existing debt,” Anderson said. He added that the new facilities, along with MCA’s $20.4 million capital raise in June, give the company “strong financial capabilities to execute our strategy.”
In a similar vein, MCA agreed to purchase a 10.15 hectare irrigated property adjacent to its Bilbul site for $1 million. The property includes a residence and hangar and will provide space for the expansion of MCA’s facilities on site.
Murray Cod Australia is a vertically integrated aquaculture company farming Aquna Sustainable Murray Cod, a premium fish farmed in the Riverina, New South Wales. The company uses proprietary technology to raise the fish in its natural habitat.
Shares closed up 7.41% at $0.14 yesterday.
