Yowie Faces Higher Interest Costs as Loan Facility Extended and Increased

Loan Facility Extension and Increase

Yowie Group Limited (ASX, YOW), the confectionery company known for its novelty chocolate products, has announced an extension and increase to its secured working capital loan facility with Keybridge Capital Limited (ASX, KBC). Originally set to mature on 30 September 2025, the loan facility's maturity date has now been extended to 31 January 2026, providing Yowie with an additional four months of financial flexibility.

Alongside the extension, the loan limit has been increased from A$1 million to A$1.5 million. This increase signals Yowie's intent to bolster its liquidity position, potentially to support operational needs or strategic initiatives in the near term.

Revised Interest Rate Structure

The amendment also adjusts the interest rates applicable to the facility. Prior to the original and extended repayment dates, secured amounts will attract interest at 9% per annum, while unsecured amounts will be charged at 12% per annum. Post these repayment dates, the rates rise to 11% and 14% respectively. This tiered structure incentivizes timely repayment but also reflects the lender’s risk exposure over time.

Despite these changes, the facility remains secured under the terms permitted by ASX listing rules, maintaining the lender’s security interest in Yowie’s assets. Further advances under the facility remain at the discretion of Keybridge Capital, underscoring the importance of ongoing lender confidence.

Implications for Yowie’s Financial Position

This amendment follows the initial facility agreement announced in July 2025 and suggests that Yowie is actively managing its capital structure to navigate current market conditions. While the extension and increased limit provide breathing room, the relatively high interest rates highlight the cost of this flexibility.

Investors will be watching closely for updates on Yowie’s overall debt levels and cash flow generation to assess how effectively the company is leveraging this facility. The move may also hint at upcoming operational or growth initiatives requiring additional working capital.