Insights

Openpay (ASX:OPY) share price jumps 13% on US update

Openpay is ready to take on the United States…
The post Openpay (ASX:OPY) share price jumps 13% on US update appeared first on The Motley Fool Australia. –

The Openpay Group Ltd (ASX: OPY) share price has been a strong performer on Thursday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up 13% to $1.44.

Why is the Openpay share price pushing higher?

Investors have been bidding the Openpay share price higher today following the release of an update on its US operations.

According to the release, the company has entered into a US$271.4 million asset-backed revolving debt facility with Goldman Sachs and mezzanine financing provided by Atalaya Capital Management.

The release notes that this warehouse facility will enable Openpay to fuel its expansion into the enormous US market. Management believes it represents a key milestone for the company as it looks to facilitate transactions for merchants and consumers in the country.

As part of the deal, Openpay will issue 1,022,271 warrants to Goldman Sachs. Each warrant is exercisable into one fully paid ordinary Openpay share at a subscription price of ~$1.30 per warrant. This represents the 30-day volume weighted average price on 5 October.

Management commentary

Openpay’s US CEO and Global Chief Strategy Officer, Brian Shniderman, was delighted with the news.

He commented: “We are thrilled to work with Goldman Sachs and Atalaya who will now deliver the funding to enable our growth in the US at scale. We will begin distributing BNPL in large volumes through major ecosystem partnerships like payments processors, and merchant aggregators requiring significant funding.”

“This is precisely what we shared as our plan with investors, and all part of our six Pillar Strategy. This facility is now set to grow our US business at a greater scale for the global company through this exciting US launch going live this month.”

This sentiment was echoed by Openpay’s US CFO, Efrat Yellin.

He added: “We are excited and honored for Goldman Sachs and Atalaya to serve as our foundational funding financial institutions. Working with these funders complements our solid balance sheet setting us up for our US launch. This facility will allow us to scale quickly and provide US consumers with funding for their various needs.”

Despite today’s decent gain, the Openpay share price is down a disappointing 40% since the start of the year.

Shareholders will no doubt be hoping this news is an inflection point for the Openpay share price.

The post Openpay (ASX:OPY) share price jumps 13% on US update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Openpay right now?

Before you consider Openpay, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Openpay wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These were the best performing ASX BNPL shares in September

Openpay (ASX:OPY) share price up 5% on Kogan and Nissan deals

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!