Dominion Lending Centres amended and extended its credit facilities with The Toronto-Dominion Bank effective December 19, 2023. The maturity date for the credit facilities has been extended from December 22, 2024 to December 19, 2026.

The amended credit facilities are comprised of two senior credit facilities and a junior term credit facility.

The Senior Credit Facilities provide the Corporation with a $15 million revolving credit line and a term facility used to pay out the existing senior facilities (the term facility has $36 million drawn at closing). Interest on the Senior Credit Facilities is based on the prime borrowing rate plus an additional amount determined based on the Corporation’s total leverage. On closing of the Senior Credit Facilities, the interest rate is anticipated to be equal to the prime borrowing rate.

The Junior Credit Facility provides the Corporation with a $4.2 million term loan. The Junior Credit Facility is secured by a first charge over all of the Corporation’s “non-core business assets” and a junior security interest over the Corporation’s “core business assets” (subject to certain security-sharing rights of the Preferred Shareholders). Interest on the Junior Credit Facility is based on the prime borrowing rate plus an additional amount determined based on the Corporation’s total leverage. On closing of the Junior Credit Facility, the interest rate is anticipated to be prime plus 75 bps.