Quarterhill, a provider of tolling and enforcement solutions for the intelligent transportation system industry, reached an agreement in principle with its existing syndicate of bank lenders led by HSBC Bank Canada on an amendment to the existing credit agreement with the company’s subsidiary, Quarterhill ITS. The amended credit agreement is expected to be finalized and effective by June 30.
As disclosed with Quarterhill’s financial statements for the three-month period ended March 31, Quarterhill ITS was offside certain ratio covenants in the credit agreement. Under the terms agreed to in principle in the amended credit agreement, Quarterhill ITS will be granted a covenant relief period by the lending syndicate through Dec. 31. Other terms and conditions to the amended credit agreement are customary for transactions of this nature.
“We are pleased to have reached this agreement in principle with our lenders and for their continued support of the business,” John Gillberry, interim CEO of Quarterhill, said. “The amended credit agreement will provide us with flexibility as we execute on our ITS growth plan.”
