Tribe Property to obtain $15M replacement loan facility

Executive Summary

• Tribe Property Technologies Inc. has entered into a definitive loan agreement with CIBC for a senior loan facility of up to $15 million, replacing its existing senior term loan facility.
• The new facility consists of a $3 million revolving operating line for working capital and a $12 million revolving merger-and-acquisition facility to finance strategic acquisitions.
• The transaction offers improved financial terms, including a lower interest rate, waived fees, and extended amortization periods, while carrying over existing obligations of approximately $10.15 million from the previous facility.

Key Details

• Facility Structure:
  • Total facility size: Up to $15 million.
  • Revolving Operating Line: $3 million to support working capital requirements.
  • Revolving M&A Facility: $12 million intended to finance strategic acquisitions.
• Previous Facility Comparison:
  • Previous facility included a $1 million revolving operating line and a $7 million non-revolving M&A facility (with a $5 million accordion feature).
  • Outstanding obligations carried over to the new facility as of Sept. 30, 2025:
    • Approximately $650,000 drawn against the previous operating line.
    • $9.5 million drawn against the previous M&A facility.
    • Total carried obligations: ~$10.15 million.
• Financial Terms & Conditions:
  • Interest Rate: The new facility offers a more favorable interest rate compared to the previous facility's rate of prime plus 2.65% per annum.
  • Fees: The new facility waives commitment, renewal, management, and standby fees charged under the previous senior term loan.
  • Amortization Schedule:
    • Initial amounts drawn under the M&A facility: Repaid in blended monthly payments of principal and interest, amortizing over 10 years.
    • Subsequent draws: Amortizing over 7 years.
    • Previous facility amortization: 5 years.
  • Covenants: The company is subject to certain financial and negative covenants and will enter into security documentation with CIBC.
• Strategic Impact:
  • Provides improved access to non-dilutive capital.
  • Reduces dependence on vendor takeback (VTB) or earnout structures.
  • Lowers cost of borrowing and increases financial flexibility.
• VTB Reduction Progress:
  • As of Sept. 30, 2025, VTBs declined to $1.95 million.
  • This represents a 55% reduction from $4.3 million at year-end 2024.

Notable Quotes

• "We are thrilled to announce this significant milestone for Tribe, which illustrates our commitment to strategic growth and financial discipline," said Joseph Nakhla, chief executive officer of Tribe. "Executing this financing facility is an essential part of our growth strategy as it provides us with improved access to non-dilutive capital and lowers our borrowing costs, which are beneficial to our long-term capital structure. We're also pleased with the progress we have made in reducing our VTBs as we continue to strengthen our financial position and balance sheet."