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Colabor enters new credit agreement, subordinated loan; repays debt
By Taylor Fox
New York, Feb. 18 – Colabor Group Inc. closed its refinancing including a credit agreement, new subordinated loan and repayment of debt, according to a news release.
Colabor entered into a credit agreement for a new first-ranking secured credit facility for a total amount of C$80 million, comprising a revolving credit of C$50 million and a term loan of C$30 million.
The facility bears interest at the cost of funds plus a margin varying between 175 basis points to 325 bps, depending on the company’s leverage ratios and matures in February 2025.
The loan is repayable in the amount of C$3 million per year and includes an accordion allowing the credit facility to be increased by mutual agreement by an additional C$20 million.
Colabor also entered into a C$20 million new subordinated loan with Investissement Quebec of which C$15 million has been disbursed at closing and C$5 million is available until February 2022.
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.
Colabor also repaid in full its C$12 million existing subordinated debt with Fonds de solidarite des travailleurs du Quebec.
Colabor intends to use the proceeds from the refinancing to redeem its 6% convertible debentures due Oct. 13, 2021.
Colabor is a Boucherville, Quebec-based food distributor and wholesaler for the hotel, restaurant and institutional markets.
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