Decisive Dividend Corporation announced that it has extended the term of its $175 million syndicated credit facility by one year. This extension maintains the committed three-year term of the credit facility and all drawn amounts now mature in June 2028. In addition, the senior lenders agreed to increase the Corporation's leverage covenant from a 3.25 times debt to adjusted EBITDA ratio to a 3.50 times debt to adjusted EBITDA ratio.
A summary of the key aspects of the Corporation's credit facility are as follows: Top tier lending syndicate: National Bank of Canada (administrative agent), Royal Bank of Canada, and Fédération des caisses Desjardins du Québec. $175 million overall facility with $100 million committed and an available $75 million accordion. Fully revolving credit facility that can be utilized to fund working capital, capital expenditures, and acquisitions.
No required principal payments for committed three-year term. All drawn amounts mature in June 2028 with annual extension provisions. Variable interest rates tiered based on leverage ratios with a current 6% effective rate.
No fees on the $75 million accordion until drawn. Financial covenants: 3.5:1 total debt to adjusted EBITDA ratio; reported 2.7:1 at March 31, 2025 1.5:1 interest charge coverage ratio; reported 1.8:1 at March 31, 2025 .
