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Traffic Technologies changes gear with new working capital financing arrangement

February 23, 2022

Traffic Technologies changes gear with new working capital financing arrangement

Australian industrial internet of things (IoT) provider Traffic Technologies continues to reposition itself after renegotiating its working capital facilities.

Australian industrial internet of things (IoT) provider Traffic Technologies continues to reposition itself after renegotiating its working capital facilities.

The company, which provides internet-enabled street lighting and road furniture, refinanced its working capital through Melbourne-based credit provider Timelio to provide a more flexible working capital solution to fund the Group’s growth.

The new lender was established in 2015, with the express purpose of improving the financial wellbeing of the businesses it works with.

Under the terms of the deal, Traffic Technologies was able to replace its existing working capital facility with an $8 million debtor and trade finance facility with a base discount rate of 7.3% per annum.

The new facility has no fixed term expiry.

“The new facilities with Timelio provide greater and extremely flexible working capital requirements to fund the next stage of the company’s growth, following significant term contract wins announced in late 2021,” Traffic Technologies CEO Con Liosatos said.

The refinancing is the latest in a series of steps undertaken by Traffic Technologies in the past year to improve its books, with a $7.19 million capital raise completed late last year.

In December, the company revealed it had paid down $6 million in debt to ADM Capital, a move which resulted in annualised interest savings of $1.2 million.

This debt reduction came within weeks of Traffic Technologies inking a $10 million contract to supply signage and safety equipment over five years with Procurement Australia, on top of a further approximately $17 million worth of contracts secured in November last year.

To stay up to date with Traffic Technologies news and announcements, please register your details on the Traffic Technologies investor portal.

Reach Corporate have been engaged by TTI to assist with their investor communications.

Sources


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