Thunderbird Entertainment Group, through its subsidiaries Thunderbird Entertainment and Atomic Cartoons, has amended and restated its existing credit facilities agreement dated June 14, 2024, with Royal Bank of Canada (RBC). The amended agreement provides the company with access to up to C$75.45 million in credit facilities to support general working capital, acquisitions, operations and production activities.
The facilities are comprised of the following:
- C$20 million revolving term facility available to Thunderbird Entertainment for the acquisition of select media companies, bearing interest at RBC’s prime rate plus 1.05% (or alternative rates for U.S. dollar or CORRA-based borrowings)
- C$10 million revolving unmargined operating line of credit for Thunderbird Entertainment to finance day-to-day operations and general corporate expenses, bearing interest at RBC’s prime rate plus 0.50% (or alternative rates for U.S. dollar or CORRA-based borrowings)
- C$4.2 million revolving lease facility for Thunderbird Entertainment to finance ongoing capital asset purchases
- C$750,000 foreign exchange line of credit for Thunderbird Entertainment to hedge against fluctuating exchange rates, bearing interest at RBC’s prime rate plus 1.25%.
- RBC business Visa facility available to TEI up to a maximum of C$500,000.
- C$40 million revolving production operating line of credit for Atomic, to finance Canadian Film or Video Production Services Tax Credits and equivalent provincial tax credits, bearing interest at RBC’s prime rate plus 0.50%.
“These amended credit facilities mark a significant step forward in Thunderbird’s growth strategy,” Jennifer Twiner McCarron, CEO and chair of Thunderbird Entertainment, said. “The agreement provides enhanced flexibility to scale our operations and invest in new opportunities, reinforcing confidence in our business model and supporting our continued focus on delivering long-term value to our stakeholders.”
The facilities are repayable on demand and are secured by general security agreements over the assets of the company and its guarantor subsidiaries. The facilities are not convertible into securities of the company, and no securities are being issued to RBC as a bonus in connection with the facilities.
