Spicers Australia is entering an agreement with business lender Scottish Pacific Business Finance to provide a receivables backed financing facility funding up to a limit of $30m.
The new financing facility for the Australian operation is for an initial two year term to November 2019. It replaces a similar receivables backed financing facility which was due to expire in March next year.
David Martin says, “We have changed our financing, by switching from one fund to another with improved terms. It gives us more flexible access to funds and more opportunities for business. It is a positive update for Spicers.”
[Related: Australian print drags down Spicers]
The company is also expected to announce by the end of next week that it will be pushing through price increases for its paper and board. Martin says “There are price increases in the market from inflation in the industry and it is coming from all fronts.”
Rivals Ball & Dogget and Direct Paper have already told the market they will be raising prices in February.
Martin says, “Completion of this refinancing provides a facility on more flexible and covenant-free terms for Spicers. We look forward to forming a successful and productive partnership with our new financing partner, Scottish Pacific.”
Spicers currently has 420 employees working across five countries and 19 locations. It is the second biggest paper merchant in Australia, and also supplies wide format hardware.
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