TD Bank Provides Facility to Support BSM Acquisition, Growth
BSM Technologies announced it has closed a three-year, $10 million credit facility with Toronto Dominion Bank. This facility includes a $7 million term facility to finance the full up-front cash consideration for the company’s recent acquisition of AutoVision Wireless and a $3 million operating line-of-credit.
The term facility and operating line-of-credit will initially carry an interest rate of 3.75%. The interest rate will vary based on the prime rate and a ratio of total debt to adjusted EBITDA.
“This credit facility allows us to complete our acquisition of AutoVision with minimal dilution to shareholders,” said Aly Rahemtulla, President and CEO of BSM. “In addition, it puts us in a strengthened financial position to execute on other accretive opportunities that are consistent with our growth initiatives, while still maintaining a conservative capital structure.”
Toronto-based BSM Technologies, through its subsidiary BSM Wireless, is a provider of remote monitoring, fleet tracking, fleet maintenance, and business intelligent engine providing real time, web–based tracking of mobile and fixed assets.