Atomos has secured a new $10 million finance facility with the Commonwealth Bank of Australia. According to Atomos, this gives them the ability to pursue strategic acquisitions to complement and accelerate their product roadmap and accelerate product development.
It also allows Atomos to hold more core products, reduce freight costs by shifting from air to sea where it makes sense, and better manage through global supply and demand challenges.
Atomos states that having the backing of Australia’s largest bank is a strong vote of confidence in Atomos and where they are heading.
At the same time, Atmos has also reduced the cost of our existing debt, putting the company in a stronger overall position with more flexibility.
Highlights
- Approved new $10m, variable market rate, 3-year, CBA Facility
- 10.35% funding cost based on current variable market rate of 4.35% (includes 3% Facility Line Fee and 3% Usage Fee)
- New Facility provides opportunities for: Strategic M&A activity to complement and accelerate existing Product Roadmap; Accelerated Product Development and associated Inventory investment; Increased Inventory holdings of core product lines, enabling significant freight cost reductions by use of sea freight versus air freight; and the ability to withstand unforeseen global demand and supply challenges.
- Negotiated reduction in cost of existing loan facility from 20% down to 13% ($700k pa savings)
- Settlement of Facility subject to signing Facility Agreement and customary Security documentation and Intercreditor Deed with existing financier, from whom consent has been received for a pari passu security arrangement
- Atomos reconfirms FY26 guidance for revenue to exceed $47.5m and EBITDA to exceed $3.8m, despite (albeit remain cautious) current global uncertainty and potential supply chain disruption
