Tantalus Systems Announces Debt Restructuring

Executive Summary

• Tantalus Systems Holding Inc. has entered into an amended credit facility with Fifth Third Bank, N.A., increasing its total aggregate debt commitments to $20.0 million.
• The new facility structure includes a $12.0 million revolving credit facility, a new $3.5 million term loan, and $4.5 million in letters of credit capacity.
• The amendment extends maturity dates for existing facilities and provides capital to repay an existing term loan with Export Development Canada (EDC), aiming to lower the cost of capital and streamline the company's financing structure.

Key Details

• Aggregate Commitments: Up to $20.0 million total.
• Revolving Credit Facility: $12.0 million capacity; maturity extended to June 30, 2029.
• Term Loan: New $3.5 million facility with a five-year maturity.
• Letters of Credit: $4.5 million capacity; maturity on June 30, 2027.
• Lender: Fifth Third Bank, N.A. (successor to Comerica Bank).
• Use of Proceeds: To support working capital requirements, support commercial bids via letters of credit, and repay the existing term loan with Export Development Canada (EDC).
• Security: Obligations are secured by a first-priority lien on the assets of Tantalus through its applicable subsidiaries.
• Strategic Impact: The company states the amendment strengthens its capital structure, lowers the cost of capital, and provides financial flexibility for growth.

Notable Quotes

• "The amendment to our existing credit facility with Fifth Third strengthens our capital structure as we continue to execute on our growth strategy," said Peter Londa, President and Chief Executive Officer of Tantalus. "The addition of the term loan also enables us to repay our existing EDC term loan, lower our cost of capital, and streamline our financing structure while maintaining flexibility to support working capital and future growth."