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BRAMPTON, Ontario, November 08, 2021--(BUSINESS WIRE)--DATA Communications Management Corp. (TSX: DCM) ("DCM" or the "Company"), a leading provider of marketing and business communication solutions to companies across North America, is pleased to announce the refinancing of certain of its credit facilities. The proceeds from new term loans will be used to repay a portion of the Company’s outstanding indebtedness.
"We expect to realize approximately $1.5 million in interest expense savings in 2022 from this refinancing, which we believe recognizes improvements made in our financial performance and the significant reduction in total leverage we have achieved," said Richard Kellam, President and CEO of DCM. "We appreciate the valued relationships with our syndicate of credit partners."
DCM has entered into an amended and restated credit facility (the "Amended Bank Facility") with its Canadian chartered bank lender (the "Bank"). The Amended Bank Facility includes a revolving credit facility of up to $15 million, a term loan of $10 million (the "Bank Term Loan") and an "accordion" facility which can provide up to $10 million of additional capacity under the revolving facility. The Bank Term Loan will amortize in equal monthly payments over 30 months. The maturity date of the Amended Bank Facility has been extended from January 31, 2023 to November 8, 2024. Advances under the Amended Bank Facility are subject to floating interest rates based upon the Canadian prime rate plus an applicable margin of 50 basis points and 350 basis points for the revolving and term components, respectively. The revolving facility is available to finance the working capital needs of the Company. The Company is using the proceeds of the Bank Term Loan to repay a portion of the indebtedness outstanding under the Company’s $21.4 million term loan with Crown Credit Partners (the "Crown Term Loan").
DCM has also entered into a commitment letter with Fiera Private Debt Fund VI LP ("FPD VI"), by its general partner, Fiera Private Debt Fund GP Inc. ("FPD"), pursuant to which FPD has committed to provide an $11 million term loan facility, with a term of 60 months from closing. The FPD VI term loan would amortize in equal monthly principal payments over 84 months, with the remaining 24 payments at maturity due in a bullet payment. A fixed interest rate of 5.95% per annum is payable on the FPD VI term loan. Closing of the FPD VI facility is expected in November 2021 and remains subject to finalization of mutually acceptable definitive documentation. The Company will use the proceeds from the new term loan expected to be provided by FPD to repay the balance of amounts owing under the Crown Term Loan.
ABOUT DATA COMMUNICATIONS MANAGEMENT CORP.
DCM is a leading provider of marketing and workflow solutions that solve the complex branding, communications, logistics and regulatory challenges of some of North America’s biggest brands. Powered by purpose-built technology like our DCMFlex™ workflow management platform and our ASMBL digital asset management solution, we help clients bring their brands to life and create more meaningful connections with customers. We serve market leaders in key verticals such as financial services, retail, healthcare, cannabis, energy, and the public sector, supporting them with marketing scale, speed, efficiency and insight that drives their competitiveness and improves their performance.
Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
Certain statements in this press release constitute "forward looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. When used in this press release, words such as "may", "would", "could", "will", "expect", "anticipate", "estimate", "believe", "intend", "plan", and other similar expressions are intended to identify forward-looking statements. These statements reflect DCM’s current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release. Forward-looking statements include statements about the proposed $11 million term credit facility proposed by FPD VI; the ability of the Company to finalize the terms of related definitive documentation and repay the outstanding balance of the Crown Term Loan; and the anticipated interest savings and other benefits attributable to refinancing the Company’s credit facilities.
These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees that future performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward looking statements. Additional factors are discussed under the headings "Liquidity and capital resources" and "Risks and Uncertainties" in DCM’s management’s discussion and analysis, annual information form, and other publicly available disclosure documents, as filed by DCM on SEDAR (www.sedar.com).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this presentation as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward-looking statements.
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Mr. Richard Kellam
President & Chief Executive Officer
DATA Communications Management Corp.
Mr. James E. Lorimer
Chief Financial Officer
DATA Communications Management Corp.