DCM announces refinancing of its credit facility, expected to save $ 1.5 million on interest charges in 2022
BRAMPTON, Ontario – (COMMERCIAL THREAD) – DATA Communications Management Corp. (TSX: DCM) (âDCMâ or the âCompanyâ), a leading provider of marketing and business communications solutions to businesses in North America, is pleased to announce the refinancing of some of its credit facilities. . The proceeds from the new term loans will be used to repay a portion of the outstanding debt of the Company.
“We expect to achieve approximately $ 1.5 million in interest savings in 2022 through this refinancing, which we believe recognizes the improvements in our financial performance and the significant reduction in total leverage that we have. achieved, âsaid Richard Kellam, President and CEO of DCM. âWe appreciate the privileged relations with our syndicate of credit partners. ”
DCM has entered into an amended and restated credit facility (the âAmended Bank Facilityâ) with its Canadian chartered bank lender (the âBankâ). The Amended Bank Facility consists of a revolving credit facility of up to $ 15 million, a term loan of $ 10 million (the âBank Term Loanâ) and an âAccordionâ facility which can provide up to $ 10 million of additional capacity under the revolving credit facility. The bank term loan will be amortized in equal monthly installments over 30 months. The maturity date of the Amended Bank Facility has been extended from January 31, 2023 to November 8, 2024. Advances under the Amended Bank Facility are subject to variable interest rates based on the Canadian prime rate plus a applicable margin of 50 basis points and 350 basis points. basis points for renewable and term components, respectively. The revolving credit facility is available to finance the working capital requirements of the Company. The Company uses the proceeds of the bank term loan to repay a portion of the outstanding debt under the Company’s $ 21.4 million term loan to Crown Credit Partners (the âCrown Term Loanâ) .
DCM has also entered into a letter of commitment with Fiera Private Debt Fund VI LP (âFPD VIâ), through its general partner, Fiera Private Debt Fund GP Inc. (âFPDâ), pursuant to which FPD has agreed to provide a $ 11 million term loan facility with a term of 60 months from closing. The FPD VI term loan would be amortized in equal monthly principal installments over 84 months, with the remaining 24 installments at maturity being due as a final payment. A fixed interest rate of 5.95% per annum is payable on the FPD VI term loan. The closure of the FPD VI facility is scheduled for November 2021 and remains subject to the finalization of mutually acceptable final documentation. The Company will use the proceeds of the New Term Loan expected to be provided by FPD to repay the balance of amounts owed under the Crown Term Loan.
ABOUT THE DATA COMMUNICATIONS MANAGEMENT CORP.
DCM is a leading provider of marketing and workflow solutions that solve the complex branding, communications, logistics and regulatory challenges of some of North America’s largest brands. . Powered by specially designed technology like our DCMFlex â¢ workflow management platform and ASMBL digital asset management solution, we help customers bring their brands to life and create more meaningful connections with customers. We serve market leaders in key verticals such as financial services, retail, healthcare, cannabis, energy and the public sector, supporting them with scale to market, speed, efficiency and knowledge that stimulate their competitiveness and improve their performance.
Additional information relating to DATA Communications Management Corp. are available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the Electronic Document Search and Analysis System (SEDAR) at www.sedar.com.
Certain statements contained in this press release constitute “forward-looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, objectives or achievements of DCM, or industry results, are materially different from future results. , the performance, objectives or achievements expressed or implied by these forward-looking statements. When used in this press release, words such as “could”, “would”, “could”, “will”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan”, and other similar expressions are intended to identify forward-looking statements. These statements reflect DCM’s current opinions regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release. Forward-looking statements include statements about the $ 11 million term credit facility offered by FPD VI; the Company’s ability to finalize the terms of the related final documentation and to repay the outstanding balance of the Crown Term Loan; and anticipated interest savings and other benefits attributable to the refinancing of the Company’s credit facilities.
These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be interpreted as guarantees that future performance or results will be achieved. Many factors could cause DCM’s actual results, performance, goals or achievements to differ materially from future results, performance, goals or achievements that could be expressed or implied by such forward-looking statements. Other factors are discussed under the headings âLiquidity and Capital Resourcesâ and âRisks and Uncertaintiesâ in DCM’s MD&A, Annual Information Form and other publicly available disclosure documents, as filed by DCM. on SEDAR (www.sedar.com).
If one or more of these risks or uncertainties materialize, or if the assumptions underlying forward-looking statements prove to be incorrect, actual results may differ materially from those described in this presentation as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, DCM does not intend and assumes no obligation to update these forward-looking statements.