IAM Secures $2 Million Unsecured Debt at 15% Interest to Support Operations
Income Asset Management has secured a $2 million unsecured debt facility at 15% interest to strengthen liquidity during the quieter Christmas period while awaiting insurance claim outcomes related to a recent fraud event.
- Executed $2 million unsecured debt facility at 15% interest
- Debt funded by Managing Director and incoming board member Jim Simpson
- Liquidity boost supports operations amid pending insurance claim from fraud event
- Strong business momentum with rising transaction volumes and funds under administration
- 45.66 million listed options to expire on 31 December 2025
Liquidity Boost Amid Seasonal Slowdown
Income Asset Management Group Limited (ASX – IAM) has announced the execution of a $2 million unsecured debt facility, designed to shore up liquidity through the typically quieter Christmas period. The facility carries a notably high interest rate of 15% per annum and matures in mid-2027, with the flexibility for early repayment without penalty. This move reflects a prudent approach by the company’s board to maintain operational stability while awaiting the resolution of an insurance claim linked to a fraud event disclosed earlier this year.
Insider Support and Governance Update
Significantly, the debt is being funded by a consortium of insiders, including Managing Director Jon Lechte and incoming board member Jim Simpson, who joins the board from January 2026. This internal backing signals confidence in the company’s strategy and outlook, while also reinforcing governance continuity. The participation of senior executives in the lending consortium suggests alignment of interests as IAM navigates this period of uncertainty.
Business Momentum Remains Strong
Despite the need for additional liquidity, IAM reports robust business momentum in the second quarter, with transaction volumes, values, and funds under administration all trending upward. The company has successfully executed several high-value syndicated loan transactions, catering to client demand for higher-yield income investments. Additionally, IAM has participated in public bond deals offering yields above 6%, reflecting its active role in both onshore and offshore fixed income markets.
Options Expiry Could Impact Capital Structure
Investors should also note the impending expiry of 45.66 million listed options (IAMOB) on 31 December 2025, which will cease trading shortly before year-end. These options carry an exercise price of $0.25, and their expiry could influence the company’s capital structure and share price dynamics in the near term. Market participants will be watching closely to see how this event unfolds.
Looking Ahead
While the debt facility provides a buffer during a seasonally slow period, the company’s future hinges on the outcome of the insurance claim related to the fraud event. The board’s proactive liquidity management and insider support offer reassurance, but uncertainties remain. IAM’s ability to sustain its growth trajectory and manage capital structure changes will be key themes to monitor as 2026 unfolds.
Bottom Line?
IAM’s strategic liquidity raise and insider backing set the stage for a pivotal year ahead amid ongoing operational and capital structure developments.
Questions in the middle?
- What is the expected timeline and potential outcome of the insurance claim related to the fraud event?
- How will the expiry of 45.66 million options impact IAM’s share price and capital structure?
- Will the company pursue further capital raises or strategic initiatives to support growth in 2026?
