Financing the Acquisition of ETCThe 01-SEP-2021 news release reads:
Financing the Transaction
$75.0 million of the Acquisition price will be funded by Quarterhill's cash-on-hand and $75.0 million by newly established syndicated debt facilities. The debt facilities will include a $63.0 million term debt facility and a $19.0 million revolving credit facility. To pay for the Acquisition, the term debt facility will be drawn in full and $12.0 million will be drawn on the revolving credit facility. Debt financing for the transaction is being provided by a syndicate of banks, which is led by HSBC Bank Canada.
The debt instument can be viewed on SEDAR here:
https://www.sedar.com/GetFile.do?lang=EN&docClass=14&issuerNo=00009395&issuerType=03&projectNo=03278078&docId=5042543
On the Q2-22 conference call, the CFO advised that a $13M repayment was made on the long term debt. In my view the balance sheet remains strong with ~$110M cash on hand (including the arb settlement with Viziya owners paid in Q3).