UrtheCast Signs Credit AgreementGlobeinvestorGOLD.com Company News Alert for UrtheCast Corp.
========================
UrtheCast Signs Credit Agreementfor US$142 Million Credit Facility
Canada NewsWire
VANCOUVER, May 18, 2018 /CNW/ - UrtheCast Corp. (TSX: UR) ("UrtheCast" or the "Company") is pleased to announce that it has entered into a binding credit agreement (the "Credit Agreement") for the previously announced US$142 million senior secured credit facility (the "UrtheDaily Facility") with UrtheDaily Funding L.P., as the initial lender. The proceeds from the UrtheDaily Facility will be used to finance the construction, launch and deployment of six satellites (the "UrtheDaily Constellation"), and for related working capital and general corporate purposes.
UrtheCast is also pleased to announce the issuance of a receipt for a final prospectus qualifying the distribution of notes and warrants underlying the subscription receipts issued under the $21.7 million brokered private placement that formed part of the previously announced $34.4 million private placement that closed on May 3, 2018 (the "Subordinated Capital Financing").
The Lenders under the UrtheDaily Facility will fund the principal amount in equal amounts on each of the first drawdown date and the final drawdown date, subject to the Company meeting certain conditions precedent. The UrtheDaily Facility will mature on the fifth anniversary of the closing date, upon which it will be repayable in full. The Company may also refinance the UrtheDaily Facility at any time with no break fee.
The first drawdown of the UrtheDaily Facility is subject to a number of conditions, including the Company maintaining certain maximum leverage and total contracted value ratios and the completion of the syndication of the UrtheDaily Facility. As announced on December 5, 2017, the Company has signed binding data subscription contracts for the UrtheDaily Constellation totaling more than $100 million over the duration of the contracts. These long-term revenue commitments from these anchor customers and multiple incremental customers are expected to contribute to a consistent revenue stream for up to seven years.
The UrtheDaily Facility will be secured by a first priority security interest in substantially all of the assets of the Company and its subsidiaries. The Credit Agreement contains customary financial covenants as well as affirmative and negative covenants, including certain limitations on indebtedness, liens, investments, dividends, disposition of assets, change in business and transactions with affiliates.
The terms and conditions of the Credit Agreement, including the conditions to the final drawdown, remain substantially the same as those previously disclosed on April 3, 2018 and are set out in the Credit Agreement, which will be available for viewing and download on SEDAR (
www.sedar.com). Readers are encouraged to review the Credit Agreement in its entirety and the risk factors set out in the final prospectus of the Company dated May 17, 2018.
About UrtheCast
UrtheCast Corp. is a Vancouver-based technology company that serves the rapidly evolving geospatial and geoanalytics markets with a wide range of information-rich products and services. The Company operates Earth Observation (EO) sensors in space, through its subsidiary Deimos Imaging, S.L.U., including two satellites, Deimos-1 and Deimos-2, to produce imagery data for partners and customers in multiple markets. UrtheCast processes and distributes imagery data and value-added products on behalf of the PanGeo Alliance, a network of seven satellite operators with a combined 13 medium- and high-resolution EO sensors. UrtheCast is developing a satellite constellation designed to capture high-quality, medium resolution optical imagery of the Earth's entire landmass (excluding Antarctica) every day, called UrtheDaily™. UrtheCast is also developing the world's first fully-integrated constellation of sixteen multispectral optical and SAR satellites, called OptiSAR™. Common shares of UrtheCast trade on the Toronto Stock Exchange as ticker "UR".
For more information, visit UrtheCast's website at
www.urthecast.com.