Black Diamond Group, a provider of space rental and workforce accommodation, renewed its secured asset-based revolving credit facility.
The renewal extends the maturity of the facility to Oct. 31, 2026. The lending syndicate is unchanged and is co-led by the Bank of Nova Scotia and Bank of Montreal. There were no changes to the pricing grid for the facility. The size of the facility remains unchanged at $300 million, with an uncommitted accordion of $50 million.
All other major terms of the facility, including financial covenants, are carried forward and are unaffected by the renewal. Black Diamond Group is required to maintain a fixed charge coverage ratio of 1.1 to 1; however, this covenant is only tested in certain instances, such as when draws under the facility exceed 90% of the borrowing base.
“Our asset-based credit facility has provided the necessary flexibility and liquidity to continue growing our specialty rental platform over the last several years,” Trevor Haynes, CEO of Black Diamond Group, said. “The extended commitment from our syndicate supports our objective to continue to strategically and profitably grow our rental platform amidst a backdrop of strengthening rates and robust utilization.”
