EPX Secures $3 Million Debt Facility to Accelerate Growth and M&A

EPX Taps Debt Market to Fund Expansion

EPX Limited (ASX:EPX) has taken a significant step in its growth trajectory by signing a $3 million senior secured revolving loan note facility with Partners for Growth VII L.P. The facility carries a fixed interest rate of 12.58% per annum and spans a 36-month term, with interest-only payments during this period and principal repayable at maturity.

The loan is secured by a senior lien over EPX’s Australian and United Kingdom entities, underscoring the lender’s confidence in the company’s cross-border operations. Notably, the facility does not include warrants or call options, limiting dilution risk for shareholders but includes fees such as a 2.0% undrawn line fee, an upfront fee, and backend fees that can partly be settled via shares at a discount.

Fueling Growth Amid Favourable Market Dynamics

EPX’s CEO John Balassis highlighted the company’s readiness to leverage debt to accelerate growth and working capital flexibility. "We are seeing some interesting opportunities throughout our customer base, and this type of facility provides the business flexibility to pursue these, where it is profitable to do so," he said.

The company has recently expanded its footprint to over 1,000 sites globally, buoyed by contract wins including a NSW TAFE tender for 150+ sites, a major Australian REIT adding 200+ sites, and upsizing deals with UK transport operators Great Western Railway and FirstGroup PLC. This expansion supports EPX’s integrated platform focused on building optimisation and performance, a sector benefiting from sustained high energy prices and rising demand for energy management solutions.

Strategic Capital Deployment and M&A Optionality

The new facility is designed to enable EPX to move swiftly on revenue growth opportunities within set budget parameters, as well as provide financial flexibility to consider further mergers and acquisitions. This follows a series of capital raises in recent months, including a $2.14 million private placement and a $294,000 Security Purchase Plan, which helped fund the acquisition of Wattwatchers Pty Limited and technology investments fuel Wattwatchers Acquisition.

EPX’s proprietary EDGE cloud platform, which analyses over 5.6 billion data points annually across a 7.5+ million sqm portfolio in 25 countries, underpins its value proposition by delivering average energy consumption reductions of 21%. This technology-driven approach positions EPX well to capitalise on the growing pipeline of opportunities.