Accord Financial debentureholders approve amendments

Executive Summary

• Accord Financial Corp. debenture holders approved amendments to extend the maturity date to July 31, 2026, and increase the interest rate to 12% starting January 31, 2026.
• The amendments provide the company with additional runway to execute critical refinancing initiatives, including closing a non-binding LOI for the sale of a majority of its loans and renegotiating its senior credit facility.
• Identical amendments were concurrently approved for the unlisted Series B debentures, with full legal terms to be filed via a supplemental trust indenture.

Key Details

• Maturity date extended from January 31, 2026, to July 31, 2026.
• Interest rate increased to 12% commencing January 31, 2026.
• Accrued interest at maturity will cover 13 months: calculated at 10% from July 1, 2025, to January 30, 2026, and at 12% from January 31, 2026, to July 31, 2026.
• Debentures trade on the TSX under symbol ACD.DB and have traded on an interest-flat basis since December 15, 2025.
• Company has signed a non-binding letter of intent for the sale of a majority of Accord Financial Inc. loans.
• Ongoing discussions with senior lenders and potential new lenders to refinance the senior credit facility due February 27, 2026.
• Unlisted 10.00% unsecured subordinated debentures (Series B) approved identical amendments.
• Full 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. The company has signed a non-binding letter of intent for the sale of a majority of the loans of Accord Financial Inc. and is working to close that transaction. Discussions are also continuing with its senior lenders, as well as a number of potential new lenders to refinance its senior credit facility due Feb. 27, 2026. 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. We sincerely appreciate debentureholders' support through this critical period." — Simon Hitzig, President and CEO