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v3.22.2.2

Borrowings | 3 Months Ended
--- | ---
Sep. 30, 2022
Borrowings [Abstract] |
Borrowings | 8.Borrowings Refer to Note 12 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2022, for additional information regarding its borrowings. South Africa The amounts below have been translated at exchange rates applicable as of the dates specified. RMB Facilities, as amended, comprising a short-term facility (Facility E) and long-term borrowings Long-term borrowings - Facility G and Facility H The Company’s credit agreement with FirstRand Bank Limited, acting through its Rand Merchant Bank division (“RMB”), requires that the Company achieve certain milestones by September 30, 2022, failing which the Company would be required to place ZAR 250 million into bank accounts with RMB. The Company was unable to achieve the required milestones by September 30, 2022. However, RMB did not require the Company to place cash into the RMB bank accounts nor did RMB declare an event of default as a result of the Company’s failure to do so. The Company is currently renegotiating the terms of these lending arrangements with RMB. Available short-term facility - Facility E As of September 30, 2022, the aggregate amount of the Company’s short-term South African overdraft facility with RMB was ZAR 1.4 billion ($77.7 million). As of September 30, 2022, the Company had utilized approximately ZAR 1.0 billion ($58.0 million) of this overdraft facility. This overdraft facility may only be used to fund ATMs and therefore the overdraft utilized and converted to cash to fund the Company’s ATMs is considered restricted cash. The interest rate on this facility is equal to the prime rate. The prime rate on September 30, 2022, was 9.75%. Connect Facilities, comprising long-term borrowings and a short-term facility As of September 30, 2022, the Connect Facilities include (i) an overdraft facility (general banking facility) of ZAR 248.0 million (of which ZAR 205.0 million has been utilized); (ii) Facility A of ZAR 700.0 million; (iii) Facility B of ZAR 350.0 million (both fully utilized); and (iv) an asset-backed facility of ZAR 100.0 million (of which ZAR 90.2 million has been utilized). The amount available under the general banking facility will reduce to ZAR 205.0 million in mid-November 2022. In November 2022, the Company, through its wholly owned subsidiaries, Cash Connect Rentals (Pty) Ltd and Main Street 1723 (Pty) Ltd, increased its aggregate asset-backed facilities from ZAR 100 million to ZAR 200 million. 8.Borrowings (continued) South Africa (continued) K2020 facility, comprising long-term borrowings The Company, through its wholly owned subsidiary, K2020, entered into a revolving credit facility agreement with RMB on February 15, 2021. The revolving credit facility is for an amount of ZAR 150.0 million and matured on August 12, 2022. The facility continues to operate normally in agreement with K2020’s lender, while the parties conclude the legal agreements to significantly increase and extend the facility. Interest on the revolving credit facility is payable quarterly in arrears based on the prime rate in effect from time to time plus a margin. A commitment fee of 1.5% per annum is charged on the undrawn available facility amount. RMB facility, comprising indirect facilities As of September 30, 2022, the aggregate amount of the Company’s short-term South African indirect credit facility with RMB was ZAR 135.0 million ($7.5 million), which includes facilities for guarantees, letters of credit and forward exchange contracts. As of September 30, 2022 and June 30, 2022, the Company had utilized approximately ZAR 33.1 million ($1.8 million) and ZAR 5.1 million ($0.3 million), respectively, of its indirect and derivative facilities of ZAR 135.0 million (June 30, 2022: ZAR 135.0 million) to enable the bank to issue guarantees, letters of credit and forward exchange contracts (refer to Note 19). Nedbank facility, comprising short-term facilities As of September 30, 2022, the aggregate amount of the Company’s short-term South African credit facility with Nedbank Limited was ZAR 156.6 million ($8.7 million). The credit facility represents indirect and derivative facilities of up to ZAR 156.6 million ($8.7 million), which include guarantees, letters of credit and forward exchange contracts. As of September 30, 2022 and June 30, 2022, the Company had utilized approximately ZAR 92.1 million ($5.1 million) and ZAR 92.1 million ($5.7 million), respectively, of its indirect and derivative facilities of ZAR 156.6 million (June 30, 2022: ZAR 156.6 million) to enable the bank to issue guarantees, letters of credit and forward exchange contracts (refer to Note 19). Movement in short-term credit facilities Summarized below are the Company’s short-term facilities as of September 30, 2022, and the movement in the Company’s short-term facilities from as of June 30, 2022 to as of September 30, 2022:
|  |  |  |  |  | RMB |  | RMB |  | RMB |  | Nedbank |  |  |
|  |  |  |  |  | Facility E |  | Indirect |  | Connect |  | Facilities |  | Total
| Short-term facilities available as of September 30, 2022 | $ | 77,723 |  | $ | 7,495 |  | $ | 13,766 |  | $ | 8,691 |  | $ | 107,675
|  | Overdraft |  | - |  |  | - |  |  | 13,766 |  |  | - |  |  | 13,766
|  | Overdraft restricted as to use for ATM funding only |  | 77,723 |  |  | - |  |  | - |  |  | - |  |  | 77,723
|  | Indirect and derivative facilities |  | - |  |  | 7,495 |  |  | - |  |  | 8,691 |  |  | 16,186
| Movement in utilized overdraft facilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Restricted as to use for ATM funding only |  | 51,338 |  |  | - |  |  | - |  |  | - |  |  | 51,338
|  | No restrictions as to use |  | - |  |  | - |  |  | 14,880 |  |  | - |  |  | 14,880
|  |  | Balance as of June 30, 2022 |  | 51,338 |  |  | - |  |  | 14,880 |  |  | - |  |  | 66,218
|  |  |  | Utilized |  | 145,497 |  |  | - |  |  | 571 |  |  | - |  |  | 146,068
|  |  |  | Repaid |  | (134,130) |  |  | - |  |  | (2,792) |  |  | - |  |  | (136,922)
|  |  |  | Foreign currency adjustment(1) |  | (4,754) |  |  | - |  |  | (1,278) |  |  | - |  |  | (6,032)
|  | Balance as of September 30, 2022 |  | 57,951 |  |  | - |  |  | 11,381 |  |  | - |  |  | 69,332
|  |  |  | Restricted as to use for ATM funding only |  | 57,951 |  |  | - |  |  | - |  |  | - |  |  | 57,951
|  |  |  | No restrictions as to use | $ | - |  | $ | - |  | $ | 11,381 |  | $ | - |  | $ | 11,381
|  | Interest rate as of September 30, 2022 (%)(2) |  | 9.75 |  |  |  |  |  | 9.65 |  |  | - |  |  |
| Movement in utilized indirect and derivative facilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Balance as of June 30, 2022 | $ | - |  | $ | 313 |  | $ | - |  | $ | 5,654 |  | $ | 5,967
|  |  | Utilized |  | - |  |  | 1,634 |  |  | - |  |  | - |  |  | 1,634
|  |  | Foreign currency adjustment(1) |  | - |  |  | (109) |  |  | - |  |  | (540) |  |  | (649)
|  | Balance as of September 30, 2022 | $ | - |  | $ | 1,838 |  | $ | - |  | $ | 5,114 |  | $ | 6,952
(1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. (2) Facility E interest set at prime and the Connect facility at prime less 0.10%. 8.Borrowings (continued) Movement in long-term borrowings Summarized below is the movement in the Company’s long-term borrowing from as of as of June 30, 2022 to as of September 30, 2022:
|  |  |  |  | Facilities |  |  |
|  |  |  |  | G & H |  | A&B |  | K2020 |  | Asset backed |  | Total
| Included in current | $ | - |  | $ | 4,604 |  | $ | - |  | $ | 2,200 |  | $ | 6,804
| Included in long-term |  | 63,354 |  |  | 59,868 |  |  | 8,346 |  |  | 3,274 |  |  | 134,842
| Opening balance as of June 30, 2022 |  | 63,354 |  |  | 64,472 |  |  | 8,346 |  |  | 5,474 |  |  | 141,646
|  | Facilities utilized |  | - |  |  | - |  |  | 476 |  |  | 583 |  |  | 1,059
|  | Facilities repaid |  | - |  |  | (1,067) |  |  | - |  |  | (513) |  |  | (1,580)
|  | Non-refundable fees paid |  | - |  |  | - |  |  | - |  |  | - |  |  | -
|  | Non-refundable fees amortized |  | - |  |  | - |  |  | - |  |  | - |  |  | -
|  | Foreign currency adjustment(1) |  | (5,853) |  |  | (6,123) |  |  | (815) |  |  | (534) |  |  | (13,325)
|  |  | Closing balance as of September 30, 2022 |  | 57,501 |  |  | 57,282 |  |  | 8,007 |  |  | 5,010 |  |  | 127,800
|  |  | Included in current |  | - |  |  | 4,164 |  |  | - |  |  | 2,201 |  |  | 6,365
|  |  | Included in long-term |  | 57,501 |  |  | 53,118 |  |  | 8,007 |  |  | 2,809 |  |  | 121,435
|  |  |  | Unamortized fees |  | (678) |  |  | (276) |  |  | - |  |  | - |  |  | (954)
|  |  |  | Due within 2 years |  | 58,179 |  |  | 4,510 |  |  | 8,007 |  |  | 1,956 |  |  | 72,652
|  |  |  | Due within 3 years |  | - |  |  | 5,899 |  |  | - |  |  | 798 |  |  | 6,697
|  |  |  | Due within 4 years |  | - |  |  | 7,286 |  |  | - |  |  | 55 |  |  | 7,341
|  |  |  | Due within 5 years | $ | - |  | $ | 35,699 |  | $ | - |  | $ | - |  | $ | 35,699
| Interest rates as of September 30, 2022 (%): |  | 8.5 - 9.5 |  |  | 10.22 |  |  | 11.00 |  |  | 10.50 |  |  |
|  | Base rate (%) |  | 6.47 |  |  | 6.47 |  |  | 9.75 |  |  | 9.75 |  |  |
|  | Margin (%) |  | Varies |  |  | 3.75 |  |  | 1.25 |  |  | 0.75 |  |  |
| Footnote number |  | (2)(3) |  |  | (4) |  |  | (5) |  |  | (6) |  |  |
(1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. (2) Interest on Facility G is calculated based on the 3-month JIBAR in effect from time to time plus a margin of (i) 3.00% per annum until January 13, 2023; and then (ii) from January 14, 2023, (x) 2.50% per annum if the Facility G balance outstanding is less than or equal to ZAR 250.0 million, or (y) 3.00% per annum if the Facility G balance is between ZAR 250.0 million to ZAR 450.0 million, or (z) 3.50% per annum if the Facility G balance is greater than ZAR 450.0 million. The interest rate shall increase by a further 2.00% per annum in the event of default (as defined in the Loan Documents). (3) Interest on Facility H is calculated based on JIBAR in effect from time to time plus a margin of 2.00% per annum which increases by a further 2.00% per annum in the event of default (as defined in the Loan Documents). (4) Interest on Facility A and Facility B is calculated based on JIBAR plus a margin, of approximately 3.75%, in effect from time to time. (5) Interest is charged at prime plus 1.25% per annum on the utilized balance. (6) Interest is charged at prime plus 1.00% per annum on the utilized balance. Interest expense incurred under the Company’s South African long-term borrowings and included in the caption interest expense on the condensed consolidated statement of operations during the three months ended September 30, 2022, was $2.7 million. There was no interest expense incurred during the three months ended September 30, 2021. Prepaid facility fees amortized included in interest expense during the three months ended September 30, 2022, were $0.2 million. There was no prepaid facility fee amortization during the three months ended September 30, 2021. Interest expense incurred under the Company’s K2020 facility relates to borrowings utilized to fund a portion of the Company’s merchant finance loans receivable and this interest expense of $0.2 million is included in the caption cost of goods sold, IT processing, servicing and support on the condensed consolidated statement of operations for the three months ended September 30, 2022.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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