BUTN LIMITED — Capital/Financing Update 2021

Dec 28, 2021

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Butn Limited ACN 644 182 883 www.butn.co

ASX: BTN

Melbourne, 29/12/2021 ASX ANNOUNCEMENT

Butn secures additional funding significantly below historical weighted cost of debt

Highlights:

• $8.5m of additional debt funding secured, supporting continued growth of Butn’s receivables book

• Additional funding priced approximately 200 basis points below Butn’s FY21 weighted cost of debt

Butn Limited (ASX: BTN; Butn) is pleased to announce that it has secured a further $8.5 million of debt (Class A Notes) from Noteholders under the existing 2018-1 bond. The debt raising was strongly supported, with the offer upsized and closed early.

The funds will be used to purchase eligible receivables, positioning Butn for continued rapid origination growth in CY2022. Based on Butn’s fast turning receivables book (~6 times per year), the funding provides for more than $50 million of additional annual origination capacity, at a rate approximately 200 basis points below Butn’s FY21 weighted cost of debt.

Under the 2018-1 bond terms (as amended effective on and from 29[th] October 2021), the $8.5 million Class A Notes have a maturity date of 29 October 2023, with early call dates on 29 October 2022 and 29 April 2023, and an interest rate of 6.20% per annum. Additional Class C sponsor equity notes (nil interest) will be issued to 15% of the total bond amount.

Butn’s Co-founder and Co-CEO, Rael Ross said: “We continue to deliver on our debt restructuring plans, achieving the objectives of reducing funding costs, increasing headroom capacity, and extending funding flexibility to underpin further growth. The funding supports over $50 million of additional annual origination capacity and has been priced substantially below our historical weighted cost of debt, reflecting strong investor appetite for Butn’s quality client book and lending characteristics. We are well position to deliver growth for our customers and shareholders in CY2022.”

This announcement has been authorised for release by Rael Ross, Co-CEO and Executive Director of Butn Limited.

Further information please contact:

Investors

Rael Ross, Joint CEO and Exec Director Investor Relations: investors@butn.co

Media

Tristan Everett, Market Eye tristan.everett@marketeye.com.au

About Butn

Butn Limited is an Australian Business-to-Business (‘B2B’) funder innovating the way SMEs fund and grow their businesses. Butn focuses on transactional funding – funding SME businesses through their working capital constraints by financing individual transactions, leveraging the end debtor’s credit. With a vision of “Your money, today” Butn delivers cashflow funding solutions at the click of a Butn having funded over $700 million to Australian businesses since 2015. For more information visit www.butn.co