Uni-Select Inc. (today announced that it has successfully secured new credit facilities providing access to additional liquidity on more flexible financing terms and conditions.
The new US$565 million secured credit facilities, which will mature on June 30, 2023, consist of a US$350 million revolving credit facility and US$215 million term facilities. The new credit facilities can be used for general corporate purposes, thereby providing additional liquidity and flexibility, if required.
These new credit facilities increase our total available liquidity by an additional US$100 million, to approximately US$220 million, and complement the multiple measures implemented by our team over the past few months to weather the impact of the pandemic.
—Brent Windom, President and Chief Executive Officer, Uni-Select Inc.
“Furthermore, the new credit facilities provide a more favorable covenant structure and more latitude to manage our business going forward. We are pleased to have the continued commitment from our existing banking syndicate as well as the support of new financial partners with Export Development Canada and Investissement Québec, on behalf of the government of Québec.
With this latest initiative, combined with the measures already put in place, we believe that we are well prepared to face the ongoing economic uncertainty,” added M. Windom.
The facilities will be secured by a first ranking lien on all of the Corporation’s assets, which security has also been extended to secure the Corporation’s vendor financing program and its UK revolving credit facility of £6 million.
National Bank Financial and RBC Capital Markets acted as co-lead arrangers, and National Bank Financial acted as sole bookrunner, for the syndication of the credit facilities and National Bank of Canada is acting as administrative agent for the credit facilities.
Export Development Canada and Investissement Québec, on behalf of the government of Québec, committed US$75 million and US$25 million to the term facilities, respectively.
The new credit facilities consist of a US$350 million revolving credit facility and two-term loans totaling US$215 million. The term facilities cater to two different borrowers of the group and carry the same terms and conditions. The US$565 million facilities are subject to a total repayment of 21.2% over the term of the facilities including repayment of 17.7% on March 31, 2022.
The Corporation will be subject to leverage or interest coverage tests starting on December 31, 2021. The facilities contain a minimum profitability requirement (as described in the facilities) until the quarter ending September 30, 2021, and a minimum liquidity requirement until the quarter ending March 31, 2022.
The new credit facilities also contain various limitations on distributions and on the usages of the proceeds from the disposal of assets. All facilities are repayable without penalty with the remaining balance due at maturity on June 30, 2023.
For more information, consult: https://www.uniselect.com/