Butn Secures $100M Debt Facility to Accelerate Growth Ambitions
Butn Limited has locked in a $100 million senior secured debt facility with Northleaf Capital Partners, marking a pivotal step in its growth strategy and refinancing existing debt.
- Butn obtains $100 million senior secured debt facility over four years
- Initial $77 million drawn with $23 million committed available funds
- Full redemption of $81.3 million corporate notes including early repayment
- Facility complements recent $10 million equity raise and $10 million credit line
- Northleaf Capital Partners brings deep specialty finance expertise
A Strategic Funding Milestone
Butn Limited (ASX, BTN), an Australian leader in specialty finance, has announced a transformational $100 million senior secured debt facility with Northleaf Capital Partners. This four-year facility not only extends Butn’s funding maturity profile but also injects scalable capital to support its expanding footprint in transactional funding for SMEs.
On 1 July 2025, Butn completed an initial drawdown of $77 million from the facility, leaving $23 million in committed available funds. This fresh capital enabled the full redemption of Butn’s existing corporate notes program, including an early repayment of higher-interest notes issued in 2022, effectively streamlining the company’s debt structure.
Complementing Recent Capital Raises
This senior debt facility complements Butn’s recent $10 million equity raise and a $10 million corporate credit facility secured from Mighty Partners. Together, these funding initiatives enhance Butn’s financial flexibility and strengthen its balance sheet, positioning the company to accelerate growth in originations and expand into new industry verticals.
Butn’s CEO and Co-founder, Rael Ross, highlighted the strategic value of partnering with Northleaf, noting their deep understanding of the Australian specialty finance market and the tailored capital solution that supports Butn’s growth ambitions.
Northleaf’s Confidence in Butn’s Model
Northleaf Capital Partners, a global private markets investment firm with over US$28 billion in commitments, views Butn as a strong addition to its asset-based specialty finance portfolio. Northleaf’s Managing Directors emphasized the company’s track record and the attractive risk-adjusted returns the partnership aims to deliver, underscoring a shared vision for sustainable growth.
The facility carries an interest rate of 3-month BBSY plus 6.00%, with customary financial covenants and prepayment terms, reflecting a balanced approach to risk and flexibility.
Looking Ahead
With this significant capital restructuring, Butn is well-positioned to deepen its market penetration and enhance its service offering to SMEs facing working capital constraints. The extended funding horizon and strengthened capital base provide a solid foundation for the company’s next phase of growth.
Bottom Line?
Butn’s new debt facility marks a decisive step in scaling its specialty finance platform, but investors will watch closely how this leverage translates into sustainable growth.
Questions in the middle?
- How will Butn deploy the remaining $23 million of committed funds?
- What impact will the new debt structure have on Butn’s profitability and cash flow?
- How will Northleaf’s involvement influence Butn’s strategic direction and market positioning?
