Accord Announces Approval of Debenture Amendments
Executive Summary
- Accord Financial Corp.’s holders approved amendments to its 10% Unsecured Subordinated Debentures, extending maturity to July 31 2026 and increasing the interest rate to 12% for the final period.
- The amendment provides additional time for the company’s ongoing refinancing efforts, including a non‑binding LOI to sell a majority of Accord Financial, Inc.’s loans and negotiations with senior lenders.
- Similar amendments were approved for the unlisted Series B debentures; the changes will be reflected in a supplemental trust indenture filed on SEDAR+.
Key Details
- Amendment Terms – 10% Debentures (TSX: ACD.DB):
- Maturity extended from Jan 31 2026 to Jul 31 2026.
- Interest rate increased to 12% starting Jan 31 2026; accrued interest will be paid at maturity (13 months total).
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Accrual schedule: 10% for July 1 2025 – Jan 30 2026; 12% for Jan 31 2026 – Jun 30 2026.
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Voting Results:
- Votes in favour: 13,710 debentures (99.24%).
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Votes against: 105 debentures (0.76%).
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Series B Debentures: Holders of the unlisted 10% Subordinated Debentures (Series B) approved identical amendment terms.
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Refinancing Context – CEO Comment:
- Company is pursuing refinancing of outstanding debt obligations.
- Signed a non‑binding letter of intent to sell a majority of loans of Accord Financial, Inc.
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Ongoing discussions with senior lenders and potential new lenders for the senior credit facility due Feb 27 2026.
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Regulatory Filing: Full amendment terms will be incorporated into a supplemental trust indenture filed on SEDAR+.
Notable Quotes
“Accord continues to pursue a refinancing of its outstanding debt obligations… While there is no assurance that these initiatives will yield a successful result, the Debenture Amendments allow the Company additional time to continue its refinancing efforts.” – Simon Hitzig, President & CEO.