Accord Announces Banking Facility Update and Proposed Debenture Amendments

Executive Summary

• Accord Financial Corp. secured a short‑term extension of its main credit facility to December 23, 2025, giving the company additional time to negotiate a longer‑term amendment extending maturity to February 2026.
• The company is seeking Debentureholder approval (meeting scheduled Jan 27, 2026) to amend its 10% unsecured subordinated debentures – raising interest to 12%, extending maturity to July 31, 2026, and deferring the Dec 31, 2025 interest payment.
• A non‑binding LOI has been signed for the sale of a majority of Accord Financial, Inc.’s loan portfolio (the “AFIU Transaction”), which would reduce debt by roughly CAD 45 million and refocus operations on the Canadian market, supporting the overall refinancing plan.

Key Details

• Credit Facility Extension: Original maturity Dec 15, 2025 → extended to Dec 23, 2025; further amendment sought to push final maturity to Feb 2026.
• Debenture Amendments (proposed):
• Maturity extended from Jan 31, 2026 → July 31, 2026.
• Interest rate increased from 10% → 12% effective Jan 31, 2026.
• Deferred Dec 31, 2025 interest payment; to be paid with principal on July 31, 2026.
• Waiver of breach of Indenture for missed Dec 31 interest payment.
• Debentureholder Meeting: Special meeting scheduled Jan 27, 2026; approval requires ≥66% of principal amount present (in person or by proxy).
• AFIU Transaction LOI (non‑binding): Sale of majority of loans of Accord Financial, Inc.; expected debt reduction ≈ CAD 45 million; intended to refocus business on Canadian market.
• Strategic Rationale: Combined credit facility extension and debenture amendments provide time to complete the AFIU transaction and other asset sales, improving balance‑sheet strength and positioning the company for a full refinancing of both the bank facility and debentures.
• TSX Filing: Application submitted for TSX approval of the Debenture Amendments; pending regulatory consent.
• Market Impact: Following announcement, ACD.DB expected to trade on an “interest flat” basis.

Notable Quotes

“Accord’s refinancing plan is advancing, supported by constructive discussions with the lenders and the recently signed letter of intent in respect of the AFIU Transaction… approval of the proposed Debenture Amendments is essential to completing the refinancing plan and repaying the Debentures.” – Simon Hitzig, President & CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the release.