Zedcor arranges $50-million credit facility

Executive Summary

• Zedcor Inc. entered into a new $50 million revolving credit facility with National Bank of Canada, replacing its prior $30 million facility and adding $23.2 million of committed capital.
• The facility includes an accordion feature for up to an additional $25 million, a three‑year maturity, tighter covenants (net debt/EBITDA ≤ 3.5×, fixed charge coverage ≥ 1.15×), and an interest rate roughly 75 bps lower than the previous terms.
• Proceeds will refinance $26.8 million of existing debt, fund organic growth initiatives, support working capital, and be used for general corporate purposes; the new financing is expected to immediately reduce annual interest expense by about 75 bps.

Key Details

• Facility Size: $50 million revolving credit facility (replaces prior $30 million).
• Additional Committed Capital: $23.2 million beyond previous capacity.
• Accordion Feature: Up‑to $25 million additional draw, fee‑free until drawn.
• Maturity: Three years from closing (previous facility matured December 2027).
• Covenants: Net financed debt to EBITDA ≤ 3.5×; Fixed charge coverage ratio ≥ 1.15×.
• Interest Rate: Reduced by ~75 basis points; new rate = Prime + 0.75% (vs. Prime + 1.5%).
• Use of Proceeds:
• Refinance existing debt of $26.8 million.
• Finance organic growth initiatives.
• Support working capital.
• General corporate purposes.
• Security: First charge over present and future assets; standard financial and non‑financial security consistent with prior facility.
• Financial Impact: Expected immediate reduction in interest expense by ~75 bps, improving cost of capital and balance‑sheet flexibility.

Notable Quotes

“We are pleased to welcome National Bank of Canada as a new lending partner. This expanded facility provides Zedcor with flexible, non‑dilutive capital at an optimized cost, supporting both our near‑term growth initiatives and long‑term strategy.” – Todd Ziniuk, President & CEO

Management Change (Administrative): Tony Ciarla, President, Corporate Development, has departed the company. (Included for completeness but does not affect primary material announcement.)