Dye & Durham enters into up to C$165 million credit agreement

By Taylor Fox

New York, Sept. 28 – Dye & Durham Ltd. entered into a new credit agreement that provides for a C$140 million revolving term loan facility with an additional uncommitted accordion of up to C$25 million, for an aggregate total availability of up to C$165 million, according to a news release.

The new credit agreement will provide a line of credit on a sliding-scale-based interest rate, relative to the company’s net-funded-debt-to-EBITDA ratio. The interest rate is expected to be 3% versus the Dye & Durham’s prior term loan facility, which carried an interest rate of 8.5%.

Proceeds from the credit agreement were used to repay the amounts outstanding under its prior term loan facility, with the remaining amounts to be used for general corporate purposes and permitted acquisitions.

The maturity date for the credit agreement is Sept. 25, 2022.

Borrowings under the facility are secured by a first charge over substantially all of the company’s assets.

The Bank of Nova Scotia is administrative agent, lead arranger and sole bookrunner.

The lending syndicate is comprised of the Bank of Nova Scotia, the Toronto-Dominion Bank and Canadian Western Bank.

DLA Piper LLP is legal counsel to Dye & Durham and Borden Ladner Gervais LLP is legal counsel to the lenders.

Dye & Durham is a provider of cloud-based software and technology solutions designed to improve efficiency and increase productivity for legal and business professionals based in Vancouver.

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