VIQ Solutions, a global provider of secure, AI-driven, digital voice and video capture technology and transcription services, entered into a senior secured loan with Beedie Investments, pursuant to which the lender will make available up to $15 million to the company, pursuant to the terms of a credit agreement by and among the company and the lender.
$12 million of the loan has been advanced to the company as an initial advance, with an additional $3 million available to the company to be drawn in subsequent advances in a minimum of $1 million tranches.
“We’re excited to kick off the new year with this announcement and begin our partnership with Beedie Capital, a renowned firm with a stellar reputation and track record for value-added collaboration. This new facility is a significant step forward for VIQ Solutions. It extends the term of our lending base and provides additional capacity to fuel our future growth while allowing us to continue to execute on our operational plans to drive margin expansion in digital documentation globally,” Sebastien Paré, CEO of VIQ, said.
“We are proud to partner with VIQ Solutions as they continue to scale one of the leading international platforms in digital documentation,” David Bell, managing director at Beedie Capital, said. “We believe VIQ Solutions’ technology is a significant differentiator in an industry and vertical that still operates very traditionally and we are excited for the opportunity to help them drive growth through innovation.”
Terms of the Credit Agreement and Warrant Issuance
- The company currently intends to use the proceeds of the initial advance as follows:
- Approximately $9 million to refinance all existing senior debt
- Approximately $2 million for working capital
- Approximately $1 million for permitted growth initiatives. The subsequent advances will be used by the company for business acquisitions or growth initiatives, unless otherwise agreed by the lender.
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The amount outstanding under the loan will bear interest at 12.5% per annum, comprised of cash interest of 9.5% per annum, calculated and paid monthly, and paid-in-kind interest will be charged at a rate of 3.0% per annum, compounded monthly and added to the outstanding principal amount of the loan. A standby fee will be charged monthly at a rate of 1.5% per annum on the undrawn amount of the standby facility. The company paid a commitment fee of 1.5% of the loan. The lender has also been granted a board observer right.
The loan will be secured against all of the assets and property of the Company and certain subsidiaries pursuant to a general security agreement. The transaction contemplated by the credit agreement has been conditionally approved by the Toronto Stock Exchange.
SenaHill served as exclusive financial advisor for VIQ Solutions and Dentons Canada acted as legal advisors.
