VIQ Solutions, a global provider of AI-driven, digital voice and video capture technology and transcription services, has entered into a $1.5 million term loan with Beedie Investments.
An initial amount of $500,000 has been advanced to the company under the term loan as of the date hereof, while the remaining $1 million will be available to be drawn by the company in tranches of $500,000, subject to lender approval. Any undrawn amounts under the term loan shall be subject to a standby fee of 1.5% per annum.
The term loan will bear an interest rate of 14%, comprised of cash interest of 7% per annum and paid-in-kind interest charged at a rate of 7% per annum, compounded monthly and added to the outstanding principal amount of the term loan. The term loan has a maturity date of Jan. 13, 2027. The company intends to use the amounts advanced pursuant to the term loan for general corporate and working capital purposes.
In connection with entering into the term loan, the company and the lender entered into a fourth amendment agreement in order to amend certain terms of the credit agreement dated Jab. 13, 2023 between the company and the lender, as amended, governing the company’s $15 million senior secured loan with the lender. Pursuant to the terms of the fourth amendment agreement, and effective as of the date of the fourth amendment agreement, the interest rate on the original loan was increased by 1.25% to 15.75%, comprised of cash interest of 9.5% per annum and paid-in-kind interest charged at a rate of 6.25% per annum, compounded monthly and added to the outstanding principal amount of the original loan. Additionally, the fourth amendment agreement amended the prepayment fee under the credit agreement such that, among other things, a prepayment fee equal to the accrued and unpaid interest on the prepayment amount up to the date of prepayment plus the greater of: (i) 3% of the prepayment amount, and (ii) the accrued and unpaid interest on the prepayment amount from the date of prepayment to March 13, 2026, applies to any voluntary prepayment of the original loan occurring on or before March 13, 2026.
