Debt buyer Pioneer Credit’s shares were reinstated to quotation on the Australian Securities Exchange last week, after the company completed its refinancing and released its 2019/20 financial results. After almost a year of uncertainty about the company’s future, it’s back to business.

The company provided more details of its refinancing package, a syndicated facility agreement that includes a A$169 million term facility, a $20 million acquisition facility for portfolio debt purchases and 15.7 million warrants to be issued to the syndicate.

The weighted average interested is 11 per cent, plus a 2 per cent fee on amounts drawn and a 2.5 per cent fee on any undrawn commitment under the acquisition facility. The maturity date is September 2022 with the ability to extend the facility to July 2023.

Pioneer has also restructured $40 million of medium-term notes, extending the maturity by 12 months to March 2023 and increasing the margin from 525 basis points to 725 bps.

Pioneer had been in a standstill agreement with its previous lender, Carlyle Group, since May and missed two deadlines in the process of looking for new lenders.

The disruption took its toll on the business. Revenue from ordinary activities fell 25 per cent to $55.9 million in the year to June.

The value of debt purchases fell from $76.6 million in 2018/19 to $60.2 million in the year to June.

Balances under payment arrangements rose from $290 million to $356 million.

The company reported a loss of $40.1 million, compared with a profit of $4.3 million in 2018/19.

Pioneer chief executive Keith John said debt sales have recommenced, with improved terms for debt buyers.

He expects to see more stringent enforcement and regulatory oversight in response to the recession and is increasing Pioneer’s investment in compliance, customer treatment strategies and internal audit functions.