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Financial services company Yellow Brick Road (ASX:YBR) is paving the way for a long-desired securitisation programme as negotiations for a $300 million loan facility get back on track.
In late August the group's negotiations with a big four bank were short-lived, but yesterday chairman Mark Bouris announced YBR had entered an exclusive negotiation arrangement with a new major bank.
The non-traditional lender plans to use the residential mortgage-backed securities warehouse facility to plug gaps in mortgage markets.
"The exclusive negotiation period will allow YBR and the warehouse lender to complete all necessary due diligence, seek to obtain all necessary credit and other approvals required to finalise definitive legally binding transaction documentation," Bouris said.
The announcement came just over a week after YBR called on shareholders to reject a a $25.4 million takeover bid by corporate raider Sir Ron Brierley, claiming the proposal offered no premium and would deprive shareholders of the full strategic value of their investments.
At the time of writing the market appears unconvinced by the announcement with YBR shares down 8.7 per cent at $0.10 per share.
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