Canadian Imperial Bank increased People Corporation’s credit facility by $26.2 million to a total of $61.2 million to support the company’s acquisition of BPA Financial Group.

The amended credit facility consists of a $5 million revolving facility and a $34 million revolving acquisition facility for a total of $61.2 million of credit capacity. In addition, the expanded facility provides for an option to increase the acquisition revolver by an additional $15 million of capacity, which would result in overall credit capacity being increased to $76.2 million.

In conjunction with the facility expansion, the term of the facility has also been extended to October 31, 2019.

Upon the closing of the acquisition, the company has $40.2 million drawn on the credit facility, comprised of $22.2 million under the term loan and $18 million on the acquisition revolver. No funds have been drawn on the revolving credit facility. This leaves the company with $21 million of unused credit capacity, which could be further increased to $36 million with full use of the accordion feature. The company currently has cash balances of $7 million.

Canada-based People Corporation is a national provider of group benefits, group retirement and human resource services.