Slovar Limited — Capital/Financing Update 2014

Apr 15, 2014

money3

MONEY3 Corporation Limited First Floor, 40 Graduate Road Bundoora Vic 3083 – Tel: (03) 9093 8255 Fax: (03) 9093 8227

16th April 2014

ASX Limited
Exchange Centre
20 Bridge Road
Sydney NSW 2000

Dear Sir,

Money3 Corporation Limited - Unlisted Bond Issue

The board of Money3 is pleased to announce it is undertaking an unlisted bond offering. The Company currently has indicative commitments of $30 million and is in the process of seeking to have an independent trustee for the unlisted bonds to finalise the bond terms including documentation. The Company will inform the market once documents are complete.

The issue has been led by Thorney Group – Thorney and associated parties, who have committed to subscribe to $15 million of the issue.

The managing director of Money3 Mr Rob Bryant said:

"The Company welcome the strong commitment from Thorney Group and looks forward to partnering with them in the coming years"

"The bond is the first major step in providing the company with meaningful debt facilities to complement the equity raised over recent years. Being committed to shareholder return debt funding is another important piece in the company's long term growth strategy."

The Company intends to use the funds subscribed for general working capital and the expansion of its consumer lending business in line with the current business model. The Company also intends to use the funds to repay all current third party loans ($3.2M) within six months and in the process have the second ranking security removed. The Company will use its best endeavours to secure a second ranking security to the bond holders.

While terms of formal documents are yet to be finalised, it is envisaged that they will encompass the following:

Issuer	Money3 Corporation Limited
Eligible Investors	Bonds may only be subscribed for by invited investors who are exempt person under Chapter 6D of the Corporation Act – e.g: wholesale and sophisticated investors
Issue Date	Expected to be upon the completion of formal documentation
Subscription Amount	Investors are expected to invest up to AUD $30 million
Maturity Date	Expected to be 4 years from the issue date

MONEY3 Corporation Limited
ABN: 63 117 296 143
Registered Office: Level 1, 48 High St. Northcote, Vic 3070

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money3

MONEY3 Corporation Limited First Floor, 40 Graduate Road Bundoora Vic 3083 – Tel: (03) 9093 8255 Fax: (03) 9093 8227

Repayment	The Bonds (and any outstanding interest) will be due for repayment at Maturity Date.
Interest Rate	Interest at the rate of nine percent (9%) per annum
Additional security	Subject to shareholder approval, the Company's current intention is to also issue one attaching option to purchase shares in the Company (Options) for every $2.00 subscribed (which is likely to be exercisable at $1.30 per share)
Events of Default	The bond documentation will contain the usual commercial default provision for an investment of this type
Negative Pledge	The Company contemplates that the Bond documentation will include some commercial negative covenants normal for an investment in bonds
Trustee	The Company is currently in discussion with an independent corporate trustee on usual commercial terms with respect to a proposed unlisted bond issue

Wilson HTM Corporate Finance Limited are the lead on the transaction

Should you have any queries or require clarification please call me on 03 9093 8245

Craig Harris
CFO & Company Secretary
Money3 Corporation Limited

MONEY3 Corporation Limited
ABN: 63 117 296 143
Registered Office: Level 1, 48 High St. Northcote, Vic 3070