Carmanah Technologies amended its commitment letter from the Canadian Imperial Bank of Commerce, increasing the total to $25.5 million.
The commitment includes:
- $10.0 million 364-day committed revolving credit, expiring June 15, 2018
- $15 million revolving term acquisition credit
- $500,000 credit for trading room contingent liabilities
“We are pleased to announce these changes to our credit facilities as we continue to grow our business both organically and by way of strategic acquisition,” said John Simmons, CEO. “These credit facilities, and working with CIBC, will be instrumental in supporting these growth plans through 2017 and beyond.”
The company’s ability to draw on the 364-day committed revolving credit, revolving term acquisition credit, standby letters of credit and credit for trading room contingent liabilities is subject to borrowing covenants and conditions typical to these credits. Each of the credits have separately applicable interest rates. As part of the previous agreement, the company will pay CIBC monthly monitoring fees, annual fees and standby fees for the unused portions of the credits all of which are typical to these arrangements.
Victoria, BC-based Carmanah designs, develops and distributes a portfolio of products focused on energy optimized LED solutions for infrastructure.