11:58 AM EDT, 04/28/2025 (MT Newswires) -- (Updates shares.)

Propel Holdings ( PRLPF ) said Monday it expects to lower capital costs after reaching agreements to amend and refinance its U.S. loans.

The company said it is increasing the existing syndicated credit facility for the CreditFresh line of business by US$70 million to US$400 million. The amendment reduces the interest cost to the secured overnight financing rate (SOFR) plus approximately 620 basis points per year from 750 basis points per year.

Propel added that its MoneyKey credit facility will have an interest rate of SOFR plus approximately 425 basis points, down from the previous interest rate of SOFR plus 1020 basis points. 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 year.

"The amendment and refinancing allow us to realize a reduction in our cost of capital and increased liquidity to achieve our growth targets," chief executive 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."

Propel shares were last seen up $0.48 to $27.19 on the Toronto Stock Exchange.

Price: 27.19, Change: +0.48, Percent Change: +1.80