Matrix Asset Management announced that it has entered into financing arrangements for up to $5 million with an independent Canadian lender.

The debt is to be advanced over three tranches of $1 million, $2 million, and $2 million. The first tranche was advanced to Matrix on August 8, 2013. The remaining two tranches will be advanced to Matrix, at its option, upon satisfaction of certain conditions precedent, including completion of due diligence by the lender and the completion of the sale of GrowthWorks Enterprises’ mutual fund business to Marquest Asset Management, which is expected to occur in late August, 2013.

The Debt is secured by the assets of Matrix and guaranteed by the assets of certain of its non-registrant subsidiaries. The debt shall be repaid over 60 months from the date of the advance of each tranche. The debt bears an interest rate of 12% annually. An annual processing fee of 6.5% of the principal amount of the debt will also be payable quarterly. An initial structuring fee of 3.5% of the principal of the debt advanced is also payable to the lender. Any remaining portion of the debt may be prepaid after 50% of debt has been repaid.