"The amended and extended credit facilities provide both the Fund and BPI with lower fees and interest rates along with more favourable financial covenants. Also, the borrowing capacity of the Fund's credit facility was increased by approximately
Key highlights of the Amended and Restated Credit Agreements are as follows:
The Fund's Amended and Extended Credit Facilities:
- The maturity date was extended from
May 5, 2020 toJanuary 24, 2025 ; - The total amount of credit available was increased by approximately
$6 .7 million, from$90 .3 million to approximately$97 .0 million, by increasing the size of Facility B (defined below) from$55 .0 million to approximately$61 .7 million; - The permitted uses of Facility B were expanded beyond financing normal course issuer bids and substantial issuer bids (among other existing permitted uses) to provide flexibility to repay the Deferred Amount (defined below) to BPI;
- The availment options for Facility B and Facility D (defined below) were changed to include, among others, availment by way of (i) Canadian dollar prime rate loans, (ii) bankers' acceptances for one (1) month or three (3) months, and (iii) Canadian dollar offered rate loans with terms of one (1) month or three (3) months, with fixed rate operating loans being eliminated as an availment option; and
- The interest rates (or margins, as applicable) applicable to Canadian dollar prime rate loans, bankers' acceptances and Canadian dollar offered rate loans were reduced. In the case of Canadian prime rate loans, the interest rate is now equal to the Bank's prime rate plus between 0.00% and 0.40% (depending on the total funded net debt to EBITDA ratio) and, in the case of bankers' acceptances and Canadian dollar offered rate loans, the interest rate is equal to a variable interest rate based on the Bank's bankers' acceptance rates or Canadian dollar offered rates plus between 0.90% and 1.40% (depending on the total funded net debt to EBITDA ratio).
The Fund's Amended and Extended Credit Facilities are comprised of, among other facilities, (i) a
The obligations of the Partnerships under the Fund's Amended and Extended Credit Facilities are secured by a first charge over the assets of the Partnerships, consistent with the security previously granted by the Partnerships to secure the performance of their obligations under their previous credit facilities. The material covenants of the Partnerships in respect of the Fund's Amended and Extended Credit Facilities are substantially similar to the material covenants in the Partnerships' previous credit facilities and the Partnerships' maximum total funded net debt to EBITDA covenant remains the same at 2.25 to 1. The Fund's Amended and Extended Credit Facilities are also guaranteed by the Fund and its other subsidiaries and such guarantees are secured by a first charge over the assets of the Fund and its subsidiaries, as applicable, again in a manner similar to the guarantees and security previously granted by the Fund and its other subsidiaries to support the Partnerships' previous credit facilities. As well, no changes to the swaps were made as part of the Fund's Amended and Extended Credit Facilities.
BPI's Amended and Extended Credit Facilities:
- The maturity date was extended from
September 27, 2022 toJanuary 24, 2025 ; - The total amount of credit available was decreased
$6 .0 million, from$50 .0 million to$44 .0 million, by decreasing the size of the Term Loan (defined below) from$40 .0 million to$34 .0 million to reflect repayments of principal that BPI previously paid the Bank; - The availment options for the Operating Line (defined below) were changed to include, among others, availment by way of (i) Canadian dollar prime rate loans, (ii) bankers' acceptances with a maturity between 30 and 182 days, (iii) Canadian dollar offered rate loans with terms of one (1) month or three (3) months, and (iv) letter of credit advances;
- The interest rates (or margins, as applicable) applicable to Canadian dollar prime rate loans, bankers' acceptances and Canadian dollar offered rate loans were reduced. In the case of Canadian prime rate loans, the interest rate is now equal to the Bank's prime rate plus between 0.00% and 1.50% (depending on the total funded net debt to EBITDA ratio) and, in the case of bankers' acceptances and Canadian dollar offered rate loans, the interest rate is equal to a variable interest rate based on the Bank's bankers' acceptance rates or Canadian dollar offered rates plus between 1.00% and 2.50% (depending on the total funded net debt to EBITDA ratio). The fees applicable to Letter of Credit advances are equal to the maximum amount that the lender may be called upon to disburse under a Letter of Credit multiplied by the applicable margin between 1.00% and 2.50% (depending on the total funded net debt to EBITDA ratio) multiplied by the number of days in which the Letter of Credit advances were outstanding in the given fiscal quarter;
- Certain financial covenants and other provisions were modified; and
- The guarantees and security supporting BPI's Amended and Extended Credit Facilities remain unchanged from those provided in respect of BPI's prior credit facilities.
BPI's Amended and Extended Credit Facilities are comprised of, among other facilities: (i) a $10 million committed revolving facility to cover BPI's day-to-day operating requirements if needed (the "Operating Line"); and (ii) a $34 million committed non-revolving term facility that was used to finance the reorganization of BPI and its shareholders on
BPI's Amended and Extended Credit Facilities are guaranteed by BPI's wholly-owned subsidiaries, all of whom have granted security for their obligations under those guarantees. No security has been given by
The principal financial covenants of BPI's Amended and Extended Credit Facilities are: (i) BPI and its subsidiaries, taken as a whole, shall maintain a Total Funded Net Debt to EBITDA ratio of not greater than: 3.50:1 on closing, increasing to 4.00:1 immediately after closing, reducing to 3.00:1 by
Neither the Fund nor any of its subsidiaries has guaranteed or provided any security in respect of BPI's Amended and Extended Credit Facilities, and neither BPI nor any of its subsidiaries has guaranteed or provided any security in respect of the Fund's Amended and Extended Credit Facilities. Full particulars of the Fund's Amended and Extended Credit Facilities, including applicable interest rates, security, guarantees and other terms and conditions are contained within the Amended and Restated Credit Agreement governing the Fund's Amended and Extended Credit Facilities, a copy of which is available on www.sedar.com.
ABOUT US
The Fund is a limited purpose open ended trust with an excellent track record for investors since its IPO in 2002. Including the
BPI is
The trustees of the Fund approved the contents of this press release.
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SOURCE
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