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Australian Family Lawyers secures $10m loan facility
Listed national law firm Australian Family Lawyers has entered an agreement with NAB for a loan facility of $10 million to fund future acquisitions.
Jerome Doraisamy
Australian Family Lawyers (ASX: AFL, also known as AF Legal Group) – which has, in the last 19 months, acquired Withnalls Lawyers, Kordos Lawyers, Watts McCray and Strong Law – has executed an agreement with the National Australia Bank (NAB) for a corporate markets loan facility to fund its future acquisitions.
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The loan has a drawdown limit of $10 million and is for a term of three years, until 31 May 2025.
It will have a variable interest rate, with drawdowns amortising from 30 June 2023.
The covenants will be “standard for a facility of this kind”, AFL said in a statement to the ASX, and will include a first-ranking general security interest over the assets. Additionally, drawdown of the loan facility will be subject to a completion of certain conditions that AFL noted are “standard for such a facility”.
AFL executive chairman Grant Dearlove said that the finance facility strengthens the listed firm’s ability to expand via larger acquisitions as the firm enters its next phase of growth.
“We are pleased to be working with a lender such as NAB that understands the professional services market and has confidence in the unique position AFL has secured in it,” he proclaimed.
“This also allows us to help even more Australians in need of relationship law advice and continue to build value for all our stakeholders.”
NAB executive for professional services Sara Zahedi added: “We are incredibly proud to work with AF Legal Group.”
“Professional services are poised to thrive in Australia and we are determined to make sure we are there to support their success, every step of the way,” she said.
