Yellow Brick Road (ASX:YBR) has increased its debt facility with the Commonwealth Bank (ASX:CBA) to $12 million from $5 million, which will fund two acquisitions including that of Vow Financial holdings.
The new facility replaces the existing group that was not due to expire until 30 June 2015.
It includes an additional $1.835 million financial accommodation for existing/new ancillary overdraft, bank guarantee and corporate credit card facilities.
The facility has a term of about 3 years to 31 July 2017.
Security includes existing and new guarantees and registered general security Interests over all existing and new group subsidiaries. It also has typical convents for facilities of this size and type.
Yellow Brick Road had last month received 100% acceptances for its takeover of Vow.
The acquisition will give it access to 700 mortgage broker groups, adding to top end revenues for YBR and to earnings.
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