CALGARY, Alberta, May 04, 2021 (GLOBE NEWSWIRE) -- Quorum Information Technologies Inc. (TSX Venture: QIS) ("Quorum" or the "Company"), a leading provider of SaaS-based software technology to the automotive industry, announced today it has made a prepayment of $1.5 million in principal and interest of its BDC Capital Inc Loan Facility ("BDC Capital Facility").
The BDC Capital Facility, which was obtained in February 2019 to finance the purchase of DealerMine and Oasis, has a fixed cash interest rate of 7.7% per annum and an additional accrued interest of 4% that is due and payable on January 15, 2025, the date of maturity. As a result of the prepayment, the Company reduced the outstanding principal amount under the BDC Capital Facility by $1.49 million from $8.13 million to $6.64 million. The debt prepayment was funded with excess cash on hand. Quorum continues to have access to $6.9 million in additional funding through the BDC Capital Facility for potential future acquisitions.
"We are pleased to have begun to pay down the BDC Capital Facility," stated Maury Marks, President and CEO of Quorum. "Following the fourth quarter where we reported record adjusted EBITDA1 of $1.5 million and a cash balance of $9.3 million, Quorum is in a strong financial position to start the process of paying down the BDC Capital Facility. We have also expanded other credit facilities to provide Quorum with lower interest debt."