Quisitive Technology Solutions Inc., a premier Microsoft Cloud Services and Payment Solutions Provider, is pleased to announce that it has paid out and retired its existing credit facility with a Canadian Schedule 1 Chartered Bank (the “Bank”) and has entered into a new credit facility with a syndicate led by Bank of Montreal (“BMO”) and including Desjardins Capital Markets (“DCM”) pursuant to the terms of a loan agreement entered into between the Company, certain material subsidiaries of the Company, as guarantors, BMO, as administrative agent (“BMO”) and the lenders party thereto (the “Lenders”) dated August , 2021 (the “Loan Agreement”).
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The Loan Agreement provides for a five-year term loan of US$70,000,000 (the “Term Loan”) and a revolving loan facility of up to US$5,000,000 (the “Revolving Facility”), with all debts, liabilities, and obligations of the Company and guarantors under the Term Loan and Revolving Facility collaterally secured by a first-ranking security interest in all of the present and future undertaking, property and assets of the Company and its material subsidiaries. The Term Loan has an uncommitted accordion feature by which the Company may request increases in principal under the Term Loan up to a maximum amount of US$35,000,000. The proceeds from the Term Loan were used to payout and retire the existing debt obligations of the Company with the Bank, with the balance expected to be used to finance future permitted acquisitions. The proceeds from the Revolving Facility are expected to be used by the Company to fund working capital requirements in the ordinary course.
Interest on the Term Loan is payable on a monthly basis based on a price grid which ranges depending on the Company’s total senior debt to EBITDA ratio. The Revolving Facility is repayable with monthly interest consistent with the Term Loan rates. The Loan Agreement will be filed under the Company’s issuer profile on SEDAR.
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“Our partnership with BMO is an important step forward as we look to further our vision across our business, but especially with an emphasis on our growing Payment Solutions organization and future M&A. BMO brings an expansive U.S. footprint, significant expertise in the payments industry, and will be an overall excellent financial partner to the Quisitive strategy,” said Quisitive CEO Mike Reinhart. “This agreement builds on our strong financial position to enable future M&A and support our accelerating growth.”
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