Quorum Information Technologies, a software-as-a-service company that provides software that vehicle dealerships rely on for operations throughout North America, restructured its credit facilities with BDC Capital. The new facilities reduce overall interest rates and extends the maturity date.
Key highlights of the new facilities include:
- Two loans to replace the current $15 million facility – a mezzanine loan and a cash flow loan
- $6.9 million mezzanine loan to replace the disbursed funds of existing BDC Capital loan
- A new cash flow loan of up to $6.9 million that can be utilized for acquisitions and working capital
- The new cash flow loan replaces the undisbursed funds of existing BDC Capital loan
- The revised facilities will reduce interest costs significantly
- No principal payments on the mezzanine loan until maturity and on the cash flow loan until 2024
“We are grateful to BDC Capital for the confidence they have shown in Quorum,” Maury Marks, president and CEO of Quorum, said. “The refinancing of our outstanding debt strengthens our balance sheet and provides Quorum with meaningful financial flexibility which will help us to execute our growth and profitability objectives going forward.”
“Quorum is a longstanding BDC client, and we are pleased to restructure our loan facilities to best fit its growth requirements going forward,” Brian Whiteway, director of growth and transition capital for BDC, said. “BDC is committed to helping entrepreneurs succeed and create jobs for Canadians.”