Daily News: May 7, 2019

BMO Provides $9.5MM Facility for Redishred Capital

RediShred Capital secured a senior credit facility of an aggregate amount of $9.5 million with the Bank of Montreal.

The new facility is a non-revolving re-advanceable demand loan available by way of prime loans, USBR loans, Libor loans and fixed rate term loans. Prior to any advance on the facility, the company will determine the type of advance selected.

The company has also revised the terms of its existing credit facilities with BMO including a reduction in the interest rate to BMO’s prime rate plus 1.0%. The existing credit facilities include (i) an operating revolving demand loan in the amount of C$1 million ($740,000) and (ii) a non-revolving term loan in the amount of C$3 million ($2.24 million).

The BMO facilities are secured by a first charge on the company’s assets, pledges of the shares of the direct and indirect subsidiaries of the company and an assignment of insurance of the company and subsidiaries to BMO.

BMO has advanced $4.47 million on the $9.5 million non-revolving demand loan bearing interest at a fixed rate of 3.50% with an amortization of 60 months.

The BMO credit facilities will be used to fund potential acquisition opportunities and increase working capital.

“We are very pleased to have closed on this credit facility with the Bank of Montreal. The new facility will continue to allow Redishred to grow by way of accretive acquisitions and expand the company’s footprint in the U.S. This also aligns with the company’s objective of maintaining the appropriate capital levels to support the business and to maximize shareholder value,” said Kasia Pawluk, the company’s CFO.

Redishred Capital is the owner of the PROSHRED trademarks and intellectual property in the U.S. PROSHRED shreds and recycles confidential documents and proprietary materials for thousands of customers in the U.S. in all industry sectors.