Kelowna, British Columbia – TheNewswire - November 9, 2021 – Decisive Dividend Corporation (TSXV:DE) (“Decisive” or the “Corporation”) is pleased to announce that it has it has closed its previously announced refinancing with Canadian Western Bank and CWB Maxium Financial Inc., a wholly-owned division of Canadian Western Bank (collectively “CWB”).

 

The new credit agreement with CWB significantly reduces borrowing costs while increasing operating flexibility through less restrictive financial covenants, and access to $7.0 million in additional revolver borrowings for acquisition purposes.

 

The new agreement is for a committed 3-year term and also provides for annual extension provisions. There are no required principal payments during the term of the agreement. Comparative details of the refinancing are as follows:

 

				CWB				Pre-existing
(Stated in thousands of dollars)				Interest	Authorized			Interest	Authorized
				Rate	Debt		Drawn	Rate	Debt
Revolving term operating facility				P+1.00%		$   8,000	$      830	P+1.00%		$   8,000
Revolving term acquisition facility				P+3.00%		7,000	-	NA		NA
Non-amortizing term facility				6.25%		21,000	21,000	8.00%		20,945
Total available debt						$ 36,000	$ 21,830			$ 28,945
Maximum total debt to adjusted EBITDA						4.00:1				NA
Maximum senior debt to adjusted EBITDA						3.25:1				3.00:1
Minimum fixed charge coverage ratio						1.10:1				1.10:1

 

As of the date of this press release, the Corporation had $2.2 million in cash resulting in total funded debt, net of cash, of $19.6 million as of the date hereof.

 

The meaningful interest rate reduction on the $21.0 million term loan and other improved terms are expected to result in cash savings of $0.8 million to $1.0 million over the initial 3-year term of the new agreement with CWB.

 

In addition, having $15.0 million in committed revolving financing facilities available to, amongst other things, complete acquisitions, further enhances Decisive’s competitiveness as the Corporation works towards completing its next acquisition from its healthy, and growing, pipeline of potential targets.

  

About Decisive Dividend Corporation

 

Decisive Dividend Corporation is an acquisition-oriented company, focused on opportunities in manufacturing. The Corporation’s purpose is to be the sought-out choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired, and through that, creating sustainable and growing shareholder returns. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established, high quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership.

       

For more information on Decisive, or to sign up for email notifications of Company press releases, please visit www.decisivedividend.com.

  

FOR FURTHER INFORMATION PLEASE CONTACT:

 

Rick Torriero, Chief Financial Officer

#201, 1674 Bertram Street

Kelowna, BC V1Y 9G4

Telephone: (250) 870-9146

  

Cautionary Statements

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this News Release.

 

This press release contains forward-looking statements. These statements relate to the proposed debt refinancing and the expectation of cash savings to be realized through the term of such proposed refinancing. Forward-looking statements are necessarily based upon a number of expectations and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the Company’s control and many of which are subject to change. Readers are cautioned to not place undue reliance on forward-looking statements which only speak as to the date they are made. Although management believes that the expectations and assumptions underlying such forward-looking statements are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. A number of factors could cause actual future results, performance, achievements and developments of the Company to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information.

 

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