RE:Pl correct me if I am wrongInfo on the BDC loan is in the 2020 year end MD&A (pg.19)
As at December 31, 2020, the Company had a term loan commitment with Business Development Bank of Canada, for a four year, non-revolving second lien term facility of $40 million, maturing on November 17, 2024. At December 31, 2020, the Company had $32.5 million drawn on its term facility with $7.5 million of available borrowing capacity. Interest on the outstanding term loan will accrue and be added to the principal amount (capitalized) in the first year. Interest on the outstanding term loan will be due and payable monthly by the Company thereafter. Interest on borrowings are summarized as follows:
i. for the period between November 17, 2020 and the first anniversary date, at a per annum rate equal to 5.0 percent;
ii. thereafter until the second anniversary date, at a per annum rate equal to the greater of: the senior interest rate plus 1.0 percent; and 6.0 percent;
iii. thereafter until the third anniversary date, at a per annum rate equal to the greater of: the senior interest rate plus 2.0 percent; and 7.0 percent; iv. thereafter, at a per annum rate equal to the greater of: the senior interest rate plus 3.0 percent; and 8.0 percent.
Dibah420 wrote: Borrowed $40 MM from BDC.
Re-paid $42MM year later.
Interest rate 0.056?
New coupon rate: 0.0885 ?