07:29 AM EDT, 04/28/2025 (MT Newswires) -- Propel Holdings ( PRLPF ) said Monday it expects to lower capital costs after reaching agreements to amend and refinance its US loans.

The company reported an amendment to increase the existing syndicated credit facility for the CreditFresh line of business by US$70 million to US$400 million. The amendment reduces the loan's secured overnight financing rate (SOFR) to plus approximately 620 basis points per annum from 750 basis points per annum.

Propel added that its MoneyKey credit facility will have an interest rate of SOFR plus approximately 425 basis points per annum, down from the previous interest rate of SOFR plus 1020 basis points per annum. The MoneyKey credit facility total commitment is US$15 million.

With the combined amendment and refinancing, Propel said its cost of capital will be lowered by approximately 150 basis points per annum.

"The amendment and refinancing allow us to realize a reduction in our cost of capital and increased liquidity to achieve our growth targets," CEO Clive Kinross said. "Propel delivered record performance in 2024, and there is still so much growth ahead of us on our journey to become a global leader in providing credit for underserved consumers."