Colabor Announces the Conclusion of Its Refinancing and the Issuance of a Notice of Redemption of Its Outstanding 6.0% Convertible Unsecured Subordinated Debentures

BOUCHERVILLE, Québec, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Colabor Group Inc. (TSX:GCL) (“Colabor” or the “Company”) today announces the closing of its refinancing including:

• The Company entered into a credit agreement for a new first-ranking secured credit facility for a total amount of $80 million, comprised of a revolving credit of $50 million and a term loan of $30 million. The credit facility bears interest at the cost of funds plus a margin varying between 1.75% to 3.25% depending on the Company’s leverage ratios and matures in February 2025. The term loan is repayable in the amount of $3 million per year. The credit agreement includes an accordion clause allowing the credit facility to be increased by mutual agreement by an additional $20 million. This facility replaces the existing credit facility.
• The Company also entered into a $20 million new subordinated loan with Investissement Québec of which $15 million has been disbursed at closing and $5 million is available until February 2022 at the Company’s option. The subordinated loan bears interest at a rate varying between 7.25% and 8.25% depending on financial ratios and has a 5-year term.
• Concurrently, the Company has repaid in full the existing subordinated debt with Fonds de solidarité des travailleurs du Québec (F.T.Q.) for the balance of the loan of $12 million.
  

Notice of Redemption of Convertible Unsecured Subordinated Debentures

Colabor also announces having issued a notice of redemption to the holders of its currently outstanding 6.0% convertible unsecured subordinated debentures maturing on October 13, 2021 (the “Convertible Debentures”).

As set out in the notice of redemption, Colabor intends to redeem all of the Convertible Debentures issued and outstanding as at March 23, 2021 (the “Redemption Date”). The Convertible Debentures are redeemable at a redemption price equal to their principal amount (the “Redemption Price”), plus accrued and unpaid interest thereon to, but excluding, the Redemption Date, for a total amount of $1023,51 for each $1,000 tranche of debentures. As at the close of business on February 18, 2021, there was $50 million principal amount of Convertible Debentures issued and outstanding. Colabor intends to use the proceeds from the refinancing to redeem the Convertible Debentures. Following payment of the Redemption Price, no Convertible Debentures will remain outstanding.