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Portland adopts innovative financing with NAB
27 / 02 / 2008
Portland Orthopaedics Limited (ASX:PLD) has finalised an innovative $1.25 million financing package with The National Australia Bank (nab).
The cornerstone of the financing is an innovative asset leasing package whereby Portland's surgical instrument sets will qualify as a leasible asset. Instead of paying up-front cash for new instrument sets, the financing will allow Portland to pay for the sets over three years.
This financing will allow more Portland products with more surgeons in Australia and the US promoting revenue growth and preserving cash holdings. Portland's instrument sets will be self-financing and cash flow positive for all periods.
This is the first time nab has financed such instrument purchases this way and is a result of a long-standing mutually beneficial relationship between Portland and nab.
Portland chairman Mr John Lee said, "The cost of instruments and inventory is high in the orthopaedics business and can strain cash resources. John Brassil and his team have worked with nab to find an innovative way to keep up with surgeon and procedure growth while minimising the up-front cash required to service that growth."
The cornerstone of the financing is an innovative asset leasing package whereby Portland's surgical instrument sets will qualify as a leasible asset. Instead of paying up-front cash for new instrument sets, the financing will allow Portland to pay for the sets over three years.
This financing will allow more Portland products with more surgeons in Australia and the US promoting revenue growth and preserving cash holdings. Portland's instrument sets will be self-financing and cash flow positive for all periods.
This is the first time nab has financed such instrument purchases this way and is a result of a long-standing mutually beneficial relationship between Portland and nab.
Portland chairman Mr John Lee said, "The cost of instruments and inventory is high in the orthopaedics business and can strain cash resources. John Brassil and his team have worked with nab to find an innovative way to keep up with surgeon and procedure growth while minimising the up-front cash required to service that growth."