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ATB Provides $35MM Credit Facility to Mosaic Capital

January 26, 2017, 07:00 AM
Filed Under: Lender Finance
Related: Lender Finance

Mosaic Capital Corporation announced that it has executed a new credit agreement with ATB Corporate Financial Services which provides for a $35 million credit facility to Mosaic. It replaces Mosaic's $25 million facility with ATB that has been in place since 2014.

The Facility is comprised of a $35 million revolving committed credit facility which is available for the purposes of acquisitions, day to day operating requirements and capital expenditures. It is for a 3-year term, bearing interest at rates ranging from prime plus 0.50% - 1.50% and is secured by, among other things, a general security agreement and the assignment of securities that Mosaic holds in certain subsidiaries.

The Facility includes financial covenants structured to work with Mosaic's unique capital and corporate structure and positive working capital position.  The primary financial covenants are as follows:

Fixed charge coverage ratio – Adjusted EBITDA (defined as gross EBITDA minus non-controlling interest share of gross EBITDA) divided by fixed charges (defined as being reduced by a percentage of cash on hand) must exceed 1.10; Total debt to EBITDA – Total debt (defined to exclude the $50 million debenture which will be outstanding with Fairfax Financial upon completion of this previously disclosed financing) divided by gross EBITDA must not exceed 3.00; Net funded debt to Adjusted EBITDA – Total debt (minus cash on hand) divided by Adjusted EBITDA must not exceed 2.00; and Net funded debt to EBITDA at subsidiaries level – individual subsidiaries must not exceed 1.00 and subsidiaries in aggregate must not exceed 0.50.


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