Tucows and its wholly-owned subsidiaries entered into a credit agreement with Bank of Montreal (BMO) as administrative agent that provides for a revolving credit facility of up to $240 million, with an accordion for $60 million. The new credit agreement replaces the existing third amended and restated credit agreement with Royal Bank of Canada (RBC), with the new credit facility set to expire on Sept. 22, 2026, marking the third anniversary of the effective date of the agreement.
The new credit agreement involves several key terms and provisions with slightly better borrowing costs and leverage covenants that provide further stability for the next three years to Tucows’ financial position and to support its growth initiatives.
Tucows is excited about this strategic partnership with Bank of Montreal and the other members of the syndicate, including TD Bank, Bank of Nova Scotia, CIBC, National Bank of Canada, Business Development Bank of Canada and HSBC Bank Canada.
The credit agreement also contains customary representations and warranties, affirmative and negative covenants and events of default. Tucows is committed to maintaining specific financial covenants, including leverage and interest coverage ratios.
In connection with entering into the credit agreement, Tucows has paid off the principal balance, including accrued interest, of the revolving loans outstanding under the third amended and restated credit agreement with RBC. Tucows thanks RBC for their support during the past four years.
