Colabor Announces the Conclusion of Its Refinancing and the Issuance of a Notice of Redemption of Its Outstanding 6.0% Conver...
February 18 2021 - 4:39PM
Colabor Group Inc. (TSX:GCL) (“Colabor” or the “Company”)
today announces the closing of its refinancing including:
- The Company
entered into a credit agreement for a new first-ranking secured
credit facility for a total amount of $80 million, comprised of a
revolving credit of $50 million and a term loan of $30 million. The
credit facility bears interest at the cost of funds plus a margin
varying between 1.75% to 3.25% depending on the Company’s leverage
ratios and matures in February 2025. The term loan is repayable in
the amount of $3 million per year. The credit agreement includes an
accordion clause allowing the credit facility to be increased by
mutual agreement by an additional $20 million. This facility
replaces the existing credit facility.
- The Company
also entered into a $20 million new subordinated loan with
Investissement Québec of which $15 million has been disbursed at
closing and $5 million is available until February 2022 at the
Company’s option. The subordinated loan bears interest at a rate
varying between 7.25% and 8.25% depending on financial ratios and
has a 5-year term.
- Concurrently,
the Company has repaid in full the existing subordinated debt with
Fonds de solidarité des travailleurs du Québec (F.T.Q.) for the
balance of the loan of $12 million.
Notice of Redemption of Convertible
Unsecured Subordinated Debentures
Colabor also announces having issued a notice of
redemption to the holders of its currently outstanding 6.0%
convertible unsecured subordinated debentures maturing on
October 13, 2021 (the “Convertible Debentures”).
As set out in the notice of redemption, Colabor
intends to redeem all of the Convertible Debentures issued and
outstanding as at March 23, 2021 (the “Redemption Date”).
The Convertible Debentures are redeemable at a redemption price
equal to their principal amount (the “Redemption Price”), plus
accrued and unpaid interest thereon to, but excluding, the
Redemption Date, for a total amount of $1023,51 for each $1,000
tranche of debentures. As at the close of business on
February 18, 2021, there was $50 million principal amount
of Convertible Debentures issued and outstanding. Colabor intends
to use the proceeds from the refinancing to redeem the Convertible
Debentures. Following payment of the Redemption Price, no
Convertible Debentures will remain outstanding.
Pursuant to the terms of the Convertible
Debentures, holders of the Convertible Debentures have the right,
prior to the Redemption Date, to convert their Convertible
Debentures into Colabor common shares at a conversion rate of $2.50
per common share. A full description of the redemption process as
well as of the right of holders of Convertible Debentures to
convert their debentures into Colabor common shares is set out in
Colabor’s final short-form prospectus dated April 20, 2010.
Holders of Convertible Debentures should also refer to the Trust
Indenture dated April 27, 2010, as amended by a first
supplemental indenture dated October 13, 2016, for additional
information. All of the foregoing documents are available under
Colabor’s profile on SEDAR at www.sedar.com.
« The refinancing of our credit facilities
demonstrates the support of our existing financial partners and new
lenders, strengthens our balance sheet, provides additional
financial flexibility and reduces our financial expenses. We now
have the available resources and financial flexibility to pursue
our growth », said Louis Frenette, President and Chief Executive
Officer of Colabor.
Forward-Looking Statements
This press release contains certain statements
that may be deemed to be forward-looking statements including, but
not limited to, the redemption of the Convertible Debentures,
reflecting the opinions or current expectations of Colabor Group
Inc. concerning its performance, business operations and future
events. Such statements are subject to risks, uncertainties and
assumptions and the analysis of the debt structure and available
alternatives, and risks mentioned in the Company’s annual
information form found under its profile on SEDAR (www.sedar.com),
such as the risk of dilution for existing shareholders. As such,
these statements are not guarantee of future performance, and
actual results, realities or events may differ materially. Except
as required by law, the Company assumes no obligation to update
these forward-looking statements in the event that management’s
beliefs, estimates or opinions or other factors change.
About Colabor
Colabor is a distributor and wholesaler of food
and related products serving the hotel, restaurant and
institutional markets or “HRI” in Quebec and in the Atlantic
provinces, as well as the retail market). Within its two operating
segments, Colabor offers specialty food products such as meat,
fresh fish and seafood, as well as food and related products
through its Broadline activities.
Further information
Groupe Colabor Inc.Marie-France LabergeCorporate Controller and
Interim Chief Financial Officer450-449-4911 ext.
1272investors@colabor.com |
Investor RelationsDanielle Ste-MarieSte-Marie Strategy and
Communications Inc.450-449-0026 ext. 1108 |
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