Mosaic Capital executed a new credit agreement with ATB Corporate Financial Services that provides for a $35 million credit facility. It replaces Mosaic’s $25 million facility with ATB that has been in place since 2014.
The facility is comprised of a $35 million revolving committed credit facility which is available for the purposes of acquisitions, day to day operating requirements and capital expenditures. It is for a three-year term, bearing interest at rates ranging from prime plus 0.50% – 1.50% and is secured by, among other things, a general security agreement and the assignment of securities that Mosaic holds in certain subsidiaries.
The primary financial covenants are as follows:
- Fixed charge coverage ratio – adjusted EBITDA divided by fixed charges must exceed 1.10
- Total debt to EBITDA – Total debt divided by gross EBITDA must not exceed 3.00
- Net funded debt to Adjusted EBITDA – Total debt divided by adjusted EBITDA must not exceed 2.00
- Net funded debt to EBITDA at subsidiaries level – individual subsidiaries must not exceed 1.00 and subsidiaries in aggregate must not exceed 0.50
“This credit facility will increase the flexibility of Mosaic in making acquisitions while maintaining our strong balance sheet,” said Mark Gardhouse, CEO. “This facility forms an important part of the capital resources we need to have in place to execute on acquisition opportunities as they arise.”
Mosaic is a Canadian investment company that owns a portfolio of established businesses spanning a diverse range of industries and geographies.