ThinkSmart Announces New Financing Facilities

ThinkSmart Announces New Financing Facilities

ThinkSmart Announces New GBP40M UK Financing And $100m Australian Securitisation Facility

  • $160 million in new facilities announced
  • Facilities are part of new funding platform to capture growth

ThinkSmart Limited (ASX:TSM),  a leading Australian and international computer and office equipment financing company, announced today it has signed an Operating Agreement for a new GBP 40 million Revolving Facility with Secure Trust Bank to finance both business-to-business and consumer rental contracts in the UK originated by ThinkSmart through to February 2014.

Also today, ThinkSmart announced final credit approval had been obtained from a major Australian bank for a new $100 million Securitisation facility, which is expected to be available from the second quarter of 2011. This facility will form part of a new $200 million Australian Master Trust Multi Funder Securitisation program currently in documentation.

ThinkSmart Executive Chairman and CEO Ned Montarello said the circa $160 million in new facilities announced today were tangible examples of the progress being made by the company since launching its global funding transformation program in October 2010 with a $16 million capital raising underwritten by JP Morgan.

“We transformed our funding program to be in a stronger position to capture growth opportunities,” Mr Montarello said. “Our strategy is to establish scalable funding platforms in our major territories supported by multiple funder relationships.

“The funding platform we have created will support our projected growth well into the future and will have a positive impact on operating margins over the medium term through lower funding costs.”

ThinkSmart has been operating in the UK for more than eight years, providing business-to-business rental finance through PC World stores, which are owned by Dixons Retail Plc, the UK’s largest consumer electrical retailer.

In November 2010, ThinkSmart in partnership with Dixons launched the “Infinity” consumer rental proposition under a 5-year agreement across Dixons’ entire UK store network.

“Our expansion into the UK consumer market last November through our Infinity product means we are positioned to capitalise on opportunities in that market,” Mr Montarello said. “We also continue to lower the cost of doing business through sustainable operational efficiencies.”

ThinkSmart, with a presence in more than 600 retail stores in Australia through agreements with leading retailers, including JB Hi-Fi, Dick Smith and Officeworks, has seen its consumer rental finance offering in Australia deliver a 50% Compound Annual Growth Rate over the past 5 years.

ThinkSmart will report full-year 2010 earnings on February 21.


About ThinkSmart:  ThinkSmart is a leading international financial services company in the delivery of point of sale finance products through the retail environment. The business currently operates with market leading retailers and financial institutions in the UK, Spain, Italy, France, Australia and New Zealand where it has built a reputation for processing high volumes of low value business finance transactions both quickly and efficiently.


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