Comms Group Secures $10.7m Loan with $8m Acquisition Facility Attached

Refinancing Overview

Comms Group Limited (ASX – CCG) has announced a successful refinancing of its existing term loan through a major Australian trading bank. The new facilities replace the current debt with significantly improved pricing and include a $10.7 million business loan to refinance existing obligations. This refinancing is designed to provide the company with enhanced financial flexibility as it navigates its growth trajectory.

Additional Funding for Growth

Beyond refinancing, the package includes an $8 million undrawn acquisition loan facility. This additional funding is earmarked to support future acquisitions, subject to certain conditions. It signals Comms Group’s strategic intent to expand its footprint in the cloud communications and managed IT services sector, potentially accelerating its growth through targeted deals.

Supporting Operational Needs

The refinancing also introduces a $1 million equipment finance facility with a maximum term of four years, alongside credit card limits and bank guarantees. These facilities are structured to support the company’s operational and capital expenditure needs, ensuring it can maintain agility in a competitive technology landscape.

Terms and Timing

While the refinancing is subject to the completion of formal legal documentation and customary conditions, the Group expects to finalise and sign the agreements by early December 2025. The terms, security, and covenants align with market standards for facilities of this nature, providing substantial headroom relative to proposed covenants.

Strategic Implications

This refinancing not only reduces the cost of debt but also enhances Comms Group’s capacity to pursue strategic initiatives, including acquisitions like the recent TasmaNet deal. The company acknowledged the support from Regal Tactical Credit Fund, which played a critical role in the previous financing round that enabled the TasmaNet acquisition.