Zip Co's Equity Capital Raising and Debt Repayment Announcement

Zip Co Limited (ASX: $ZIP) has announced an equity capital raising, including a fully underwritten share placement to raise A$217m and a non-underwritten share purchase plan to raise up to an additional A$50m. The proceeds will be used to fund the early repayment of Zip's existing corporate debt facility and associated exit fee, strengthening the company's balance sheet and providing flexibility for future growth. The proposed transaction is expected to be EPS accretive for Zip shareholders in FY25.

Executive Commentary on Equity Capital Raising and Debt Repayment

The equity capital raising announced today will further strengthen our balance sheet, optimize our capital structure, and provide additional flexibility for Zip to deliver on its growth plans. Combined with the outstanding momentum in our businesses as highlighted in our 4Q results, this transaction is consistent with our focus on operational excellence and driving long-term shareholder value.

Summary of Zip Co's Equity Capital Raising and Debt Repayment

Zip Co Limited (ASX: $ZIP) has initiated an equity capital raising, comprising a fully underwritten share placement and a non-underwritten share purchase plan, to raise a total of A$267m. The proceeds will be used to repay Zip's existing corporate debt facility and the associated exit fee, supporting future growth. The company aims to strengthen its balance sheet, reset the capital structure, and provide additional flexibility and liquidity to pursue further growth. The proposed transaction is expected to be EPS accretive for Zip shareholders in FY25, aligning with the company's focus on operational excellence and long-term shareholder value.