The Afterpay Touch Group Ltd (ASX: APT) share price continued its strong run and climbed 5% to a new all-time high of $28.25 this morning.
The payments company's shares have since pulled back a touch, but still sit 2.5% higher at $27.50 at the time of writing.
Why is the Afterpay share price on the rise today?
Investors have been buying the company's shares this morning after it provided an update on its U.S. receivables warehouse facility.
According to the announcement, the company has signed a US$300 million receivables funding facility with Citi to support the expansion of its U.S. business.
The new facility will provide the company with access to external funding to support in excess of US$4 billion in annual underlying sales in the U.S. market.
Management believes this new facility complements its existing A$500 million Australian receivables funding facility, NZ$20 million facility, and its strong corporate balance sheet and liquidity position and sees it as a key element of its near-term capital management strategy.
It also advised that the US facility will operate as a warehouse funding facility broadly consistent with the Australian receivables facility and is for a term of 24 months.
Should you invest?
Whilst I don't think this was ever in doubt, it's great to see the company finalise a new U.S. receivables warehouse facility given the speed in which it has been growing in the massive market.
Overall, I think Afterpay Touch is well-placed to continue its strong growth and a great buy and hold investment option, though it might be worth holding out for a better entry point in the coming months.
I think its shares are about fully valued now and offer limited upside in the near term. The same applies to rival Zip Co Ltd (ASX: Z1P) which also hit a new all-time high this morning.
