Pluribus Technologies entered into an agreement for a new three-year, $42.0 million credit facility with National Bank of Canada. The New Facility replaces Pluribus' existing facilities that were set to mature at various intervals between 2022 to 2024.
The New Facility provides Pluribus with a $3.0 million Revolving Credit Facility, a $24.0 million Non-Revolving Term Loan and a $15.0 million Delayed Draw Term Loan. The Company intends to use the New Facility to refinance debt under its existing facility, to partially finance the recent acquisitions of Kesson Group Inc. and Kesson Group Holdings Limited, (the "Kesson Group") and Veemo, Inc. ("Social5"), in addition to future acquisitions, as well as for working capital and general corporate purposes. The New Facility is secured by all assets of Pluribus and all existing and future subsidiaries of the Company. It contains customary representations, warranties and covenants, including a covenant to maintain a Total Debt to EBITDA ratio at or below 3.5 times and a Fixed Charge Coverage Ratio of 1.15 or higher at all times. Following an initial draw on the new facility to refinance existing debt and partially finance recent acquisitions, Pluribus expects to have approximately $18 million available under the New Facility The New Facility is modelled on grid based pricing with the interest rate contingent on Pluribus' Total Debt to EBITDA ratio. Based on Pluribus' current Total Debt to EBITDA ration, initial borrowings are priced at Prime Rate plus 1.00% for Canadian dollar loans and US Base Rate plus 1.00% for US dollar loans.
"This new facility, in combination with the proceeds from our recent financing and listing on the TSX Venture Exchange, provide us with enhanced flexibility to pursue acquisitions by leveraging a combination of cash, debt and equity," said Richard Adair, CEO of Pluribus Technologies. "Having completed two acquisitions already in 2022, we expect to be able to deliver the same cadence of acquisitions as seen in 2021."
Pluribus is a technology company that is a value-based acquirer of small, profitable business-to-business technology companies in a range of verticals and industries. Pluribus provides its acquisitions access to experienced sales and marketing resources, strategic partnership opportunities, a diverse portfolio of customers in different geographical markets and enabling technologies to create new revenue streams and provide the opportunity for these companies to grow in their respective markets.