"Crown Private Credit has been an extremely valued partner and we are excited to advance our relationship with this refinancing," said
Under the terms of the Refinancing:
- The Lenders will provide a
$20 million senior secured revolving operating loan (the "Operating Loan") and a$50 million senior secured term loan (the "Term Loan", and together with the Operating Loan, the "Credit Facilities"). - The Company intends to use the proceeds of the Credit Facilities, plus available cash on hand, to repay
$78 million of existing debt, including its existing$58 million term loan with Crown Private Credit and$20 million of subordinated debt. $47 million of the Term Loan and a portion of the Operating Loan will initially be drawn at closing, with future draws on the Term Loan available to fund certain capital expenditures.- The Credit Facilities have a five-year term, with a floating interest rate that will initially accrue at the rate of prime plus 2.75% at closing, with downward adjustments to as low as prime plus 2.00% as the Company's net senior debt to trailing-twelve-month EBITDA declines.
- Compared to its existing term loan and subordinated debt, the Company expects to initially save up to
$1 million annually in interest charges.
"Expanding our relationship with supportive lenders including Crown Private Credit and a Canadian bank is an important step in our evolution as
The Refinancing is subject to customary closing conditions and is anticipated to close on or before
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation, including statements relating to the Refinancing. These forward-looking statements include, among others, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.
Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include the Company's general business risks, exposure to and reliance on government regulation and funding, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, reliance on contracts with key customers and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. The factors underlying current expectations are dynamic and subject to change.
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