The Credit Facility replaces the Corporation's previous credit agreement with CWB and represents an increase in overall debt capacity from
The Credit Facility provides for more flexibility as a single senior secured revolving credit facility that can be utilized to fund working capital, capital expenditures, and acquisitions, compared to the three separate loan tranches included in the previous credit agreement. In addition, the Credit Facility includes a
Comparative details of the Credit Facility and the previous credit agreement are as follows:
Syndicated Credit Facility
(Stated in thousands of dollars) | Effective | Revised | |||||||||
Interest | Interest | Authorized | |||||||||
Rate | Rate | Debt | |||||||||
Senior secured revolving credit facility | see below | 8.2 % | $ | 100,000 | |||||||
Accordion facility | see below | - | 75,000 | ||||||||
$ | 175,000 | ||||||||||
Previous Credit Agreement | |||||||||||
(Stated in thousands of dollars) | Effective | Previous | |||||||||
Interest | Interest | Authorized | |||||||||
Rate | Rate | Debt | |||||||||
Revolving term acquisition facility | P+2.5% | 9.7 % | $ | 25,000 | |||||||
Revolving term operating facility | P+1.0% | 8.2 % | 15,000 | ||||||||
Non-amortizing term facility | 6.9 % | 6.9 % | 28,000 | ||||||||
8.2 % | $ | 68,000 | |||||||||
"P" in the table above denotes Canadian prime rate |
Borrowings under the Credit Facility may be made by way of Canadian prime rate,
The Credit Facility is secured by a general security agreement, assignment of insurance, and unlimited corporate cross guarantees. Additionally, the Corporation has agreed to maintain the following financial ratios (as defined in the credit agreement) on a consolidated trailing twelve-month basis:
- Maximum total debt to adjusted EBITDA of 3.25:1
- Minimum interest coverage ratio of 1.50:1
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"Canadian Western Bank is thrilled to continue the partnership with Decisive in their next phase of growth and co-lead the Syndicate. This milestone reflects the dedication of Decisive' s management team in achieving remarkable success. The facility will provide additional access to capital to support the growth of the Corporation".
The terms of the Credit Facility set forth in this press release are subject to the terms set forth in the definitive documentation representing the Credit Facility and ancillary matters.
Neither the
This press release contains forward-looking statements. These statements relate to the potential benefits of the Credit Facility to the Corporation. Forward-looking statements are necessarily based upon a number of expectations and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the Corporation's control and many of which are subject to change. Readers are cautioned not to place undue reliance on forward-looking statements which only speak as to the date they are made. Although management believes that the expectations and assumptions underlying such forward-looking statements are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. A number of factors could cause actual future results, performance, achievements and developments of the Corporation to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information.
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