Dye & Durham Limited, a leading provider of cloud-based software and technology solutions designed to improve efficiency and increase productivity for legal and business professionals, announced today that it entered into a new credit agreement (the "Credit Agreement") that provides for a C$140.0 million revolving term loan facility with an additional uncommitted accordion of up to C$25.0 million, for an aggregate total availability of up to C$165.0 million.

The Company used the proceeds from the new Credit Agreement 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.

"We believe the new Credit Agreement will significantly improve our levered free cash flow, which we can now better deploy to fund our strategy of acquiring, integrating and operating businesses in our sector to drive EBITDA," said Matt Proud, CEO of Dye & Durham.

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 approximately 3.0% versus the Company's prior term loan facility, which carried an interest rate of 8.5%  on June 30, 2020. The maturity date for the Credit Agreement is September 25, 2022.

Borrowings under the facility are secured by a first charge over substantially all of the Company's assets. The new Credit Agreement contains customary representations and warranties, positive and negative covenants and events of default.

The Bank of Nova Scotia acted as 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 acted as legal counsel to Dye & Durham for the transaction, and Borden Ladner Gervais LLP acted as legal counsel to the lenders for the transaction.