Blackline Safety Corp., a provider of connected safety, signed a non-binding term sheet for a new two-year $15 million senior secured operating facility — with a potential $5 million accordion feature to increase the size of the facility — with ATB Financial. The new credit facility contemplated by the term sheet will, upon and subject to the execution of definitive credit documents, replace the company’s existing senior secured credit facility with another lender. The current facility was not renewed on the terms presented by the lender and no amounts are currently drawn or outstanding on such facility.
The new facility is expected to provide improved financial flexibility to help the company manage its operations, while building on its 21 consecutive quarters of revenue growth. The borrowing base under the new facility will be derived from the company’s monthly recurring revenue with pricing that is largely consistent with the current facility. The new operating facility will be secured, including by a general security agreement over the property of both Blackline Safety Corp. and its significant subsidiaries.
“We are appreciative of the support ATB Financial is providing through this new credit facility, which we believe is especially noteworthy considering the current lending environment where many companies are being asked for stricter covenants and tighter capital availability,” Shane Grennan, CFO of Blackline Safety, said.” We look forward to finalizing this facility in the coming weeks which, coupled with proceeds from our recently announced bought deal financing and concurrent non-brokered private placement that is expected to close on or about August 31, 2022, will provide us with a more robust capital position to execute our business plan. We would like to thank our previous lender for their support and working relationship over the past two years.”
“The technology sector is a key growing area for the Alberta economy,” Darren Eurich, CEO of ATB Capital Markets and senior vice president of business at ATB Financial, said. “We are excited to partner with Blackline Safety, an Alberta-based global technology company, through this proposed facility and provide them with the capital resources to continue to expand and innovate in their business.”
The credit facility is subject to various conditions including the company raising gross proceeds of not less than $15 million from the company’s recently announced bought deal financing and concurrent non-brokered private placement and the entering of binding definitive agreements in respect of the same.
