The revised maturity date is now set for December 19, 2026
Dominion Lending Centres has implemented amendments to its credit facilities with the Toronto-Dominion Bank effective December 19, 2023.
DLC said that the revised maturity date for these credit facilities is now set for December 19, 2026, a significant extension from the prior date of December 22, 2024.
DLC said that these arrangements cover two senior credit facilities (the “Senior Credit Facilities”) and a junior term credit facility (the “Junior Credit Facility”).
Through the Senior Credit Facilities, DLC said that it will gain access to a $15-million revolving credit line and a term facility designed to settle existing senior facilities. The term facility will bear an initial draw of $36 million at the time of closing.
The corporation added that interest rates on the Senior Credit Facilities are structured around the prime borrowing rate, along with an additional amount determined based on DLC’s total leverage. Upon closing of the Senior Credit Facilities, the interest rate is expected to be equal to the prime borrowing rate.
DLC saw a 9% drop in funded volumes to $17.7 billion year-over-year. Revenue increase has been driven by lender renewals through its Newton subsidiary and the Velocity operating platform.
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DLC said that the Junior Credit Facility grants it significant elbow room with a $4.2-million term loan. The facility will be secured by a first charge on all of DLC’s “non-core business assets” and a junior security interest on its “core business assets,” subject to specified security-sharing rights of preferred shareholders.
As with the Senior Credit Facilities, interest rates on the Junior Credit Facility are linked to the prime borrowing rate, with an additional component determined based on DLC’s total leverage. The expected interest rate upon the closing of the Junior Credit Facility is prime plus 75 basis points.
