Zedcor Inc. Announces New Increased $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 will be used to refinance $26.8 million of existing debt, fund organic growth initiatives, support working capital, and other general corporate purposes.
• The new terms lower the interest rate by roughly 75 bps (to Prime + 0.75%), extend maturity to three years from closing, and include an accordion feature for up to an additional $25 million of capacity.

Key Details

• Facility Size & Structure
• Total committed amount: $50 million (up from $30 million).
• Additional committed capital available: $23.2 million.
• Accordion feature: optional extra $25 million, fee‑free until drawn.
• Use of Proceeds
• Refinance existing debt: $26.8 million.
• Finance organic growth initiatives (e.g., scaling manufacturing capacity, expanding U.S. footprint).
• Support working capital and general corporate purposes.
• Financial Terms
• Interest rate: Prime + 0.75%, a reduction of ~75 bps versus the prior Prime + 1.5%.
• Payment structure: monthly interest‑only payments.
• Maturity: 3 years from closing (previous facility matured Dec 2027).
• Covenants
• Net Funded Debt to EBITDA ≤ 3.5×.
• Fixed Charge Coverage Ratio ≥ 1.15×.
• Security
• First charge over present and future assets; standard financial and non‑financial security consistent with prior facility.
• Management Commentary
• Todd Ziniuk, President & CEO, highlighted the partnership with National Bank, the non‑dilutive nature of the capital, and the ability to fund near‑term growth while maintaining financial discipline.
• Other Corporate Update
• Departure announced for Tony Ciarla, President Corporate Development (no replacement named).

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

Materiality Assessment: Material – Positive (significant financing that improves balance sheet strength, reduces interest expense, and funds growth).