Lumine Group, an acquirer of communications and media software companies, entered into a revolving credit facility agreement with a syndicate of Canadian and U.S. financial institutions to provide long-term financing to support the company’s operating needs and acquisition pipeline. The facility amount is $310 million with a $50 million uncommitted accordion to grow the facility if required.
The facility is collateralized by substantially all the assets of certain direct and indirect subsidiaries of the company (the “ring-fenced subsidiaries”) and contains covenants based on the financial position and financial performance of the ring-fenced subsidiaries. The covenants include a maximum leverage ratio and an interest coverage ratio. The facility maturity date is March 21, 2027, and bears an interest rate which varies based on SOFR, CORRA or prime rates, plus applicable spreads based on the leverage ratio.
The syndicate of Canadian and U.S. financial institutions is led by BMO and includes the following lenders: Fédération des Caisses Desjardins du Québec, TD Bank, Wells Fargo, Citibank and PNC Bank Canada.
