OTOC secures expanded debt facility

Perth-based contractor and surveyor OTOC has obtained approval for an $8.1 million debt facility from the Commonwealth Bank of Australia, on top of an $8.2 million facility it was awarded from the CBA last year.

“OTOC has now secured approximately $18 million in new equity and debt funding, thereby increasing balance sheet strength and ensuring we are well placed to continue executing our growth strategy,” OTOC chief executive officer Simon Thomas said.

The CBA has made $16.3 million available to OTOC to date.

So far, OTOC has used $500,000 out of its total allowance. 

The new facilities compromise a combination of commercial bills, bank guarantees, asset financing and overdraft facilities.

Last month, the company completed a $17 million acquisition of urban design and town planning business Bosco Jonson, after rounding up a $10 million capital raising as part of its plan to expand into the east coast market.

OTOC said it was well positioned to continue its strategy to become a premium national surveying business.

It reported a 5 per cent rise in full-year profit to $5.46 million in August, despite a slight drop in revenue to $113.1 million.

OTOC shares last traded at 20 cents per share at 10:40am.