Accord Financial sells U.S. loans to help pay down debt

Executive Summary

• Accord Financial Corp. has closed the sale of certain loans from its U.S. subsidiary (AFIU) to a U.S.-based buyer, executing a key component of its strategic plan to divest non-core assets and refocus on the Canadian market.
• The transaction generated gross proceeds of approximately $8.4 million CAD ($6.1 million USD), with net proceeds allocated to pay down the company's primary banking facility.
• This divestiture supports a broader balance sheet strengthening initiative, contributing to ~$38.2 million CAD in total bank indebtedness reductions since December 2025, alongside recent extensions of the company's senior secured credit facility and debentures.

Key Details

• Transaction Structure: Sale of certain loans from U.S. subsidiary Accord Financial, Inc. (AFIU) pursuant to a signed letter of understanding with a U.S.-based buyer.
• Gross Proceeds: ~$8.4 million CAD ($6.1 million USD).
• Use of Proceeds: Net proceeds (after transaction-related expenses) will be used to pay down the company's primary banking facility.
• Debt Reduction Context: While gross proceeds are lower than initially contemplated in the LOI, the company has reduced bank indebtedness by ~$38.2 million CAD ($27.8 million USD) since December 2025 through additional loan sales and repayments.
• Strategic Context: Part of a broad plan to repay/refinance outstanding debt, streamline operations, and strengthen the balance sheet, following the recent sale of BondIt Media Capital.
• Debt Maturity Extensions: Senior secured revolving credit facility extended to March 31, 2026; outstanding debentures extended to July 31, 2026.
• Future Divestitures: Company continues to pursue additional transactions to divest remaining U.S. portfolio assets to further repay outstanding debt obligations.

Notable Quotes

• "We are pleased to finalize this deal with a growing, well-respected asset-based lender. Our longtime U.S. clients are in good hands as we shift attention to our Canadian business," - Simon Hitzig, President and Chief Executive Officer.