Dye & Durham Affirms its Liquidity and Addresses Investor Questions About Financial Position

Executive Summary

• Dye & Durham reaffirmed its financial flexibility, citing positive operating cash flow and sufficient liquidity to meet debt service obligations.
• The pending sale of Credas Technologies Limited is expected to close by January 2026, generating ~C$146 million in gross proceeds that will be used to repay up to C$30 million of revolving credit and the remainder to reduce first‑lien indebtedness, lowering net leverage by roughly 0.5×.
• The company holds C$185 million in escrow for settlement of its March 1 2026 convertible senior unsecured debentures and will limit investor communications until audited financial statements are filed.

Key Details

• Liquidity Position: Positive operating cash flow; ability to draw on revolving credit facility without breaching covenants (must stay above 35% utilization and net leverage < 5.8×).
• Credas Sale Terms:
• Expected closing: January 2026 (subject to UK national security approval, anticipated by Dec 2025).
• Gross proceeds: ~C$146 million.
• Net proceeds allocation: up to C$30 million to repay revolving credit balance; remaining amount to retire first‑lien debt.
• Anticipated impact: reduction of net leverage ratio by ≈0.5×.
• Escrow Funds for Convertible Debentures:
• C$185 million held in two escrow accounts for settlement of March 1 2026 convertible senior unsecured debentures.
• Cash will be released upon either full repurchase of original debentures or maturity date, whichever occurs first.
• Quiet Period: Company will restrict regular investor engagement and public commentary until audited FY2025 financial statements (ended June 30 2025) and Q3‑2025 statements (ended Sept 30 2025) are filed; further updates will be provided via public announcements as required.
• FAQ Availability: A set of Frequently Asked Questions has been posted on the investor site and may be updated periodically.

Notable Quotes

(No direct quotes were included in the release.)