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Uni-Select Credit Agreement

The facilities will be guaranteed by a first pledge fee on all assets of the group, whose security has also been extended to ensure the group`s credit program and its $6 million revolving credit facility. “The impressive scale of our refinancing agreement reflects both our success and our future potential for cash flow generation,” said Denis Mathieu, Vice President and Chief Financial Officer of Uni-Select. The new credit facilities also include various restrictions on distributions and the use of proceeds from asset disposals. All facilities must be repaid with impunity, with the balance due by the june 30, 2023 deadline. “We are very pleased to have changed our credit facilities from the combination of a revolving credit facility and a long-term loan to a $625 million revolving credit facility. This new agreement gives us more flexibility in managing our labour capital requirements and debt relief needs. Finally, we welcome the continued commitment and support of our banking consortium,” said Eric Bussiéres, Chief Financial Officer of Uni-Select. The new credit facilities consist of a revolving credit facility of $350 million and two long-term loans totalling $215 million. The long-term facilities are aimed at two separate borrowers in the group and benefit from the same conditions.

For facilities amounting to EUR 565 million The USD is a total repayment of 21.2% over the life of the facilities, including a repayment of 17.7% on 31 March 2022. National Bank Financial and RBC Capital Markets were co-arrangers, and National Bank Financial was the sole bookrunner for credit facility syndication and the National Bank of Canada acts as an administrative agent for credit facilities. On behalf of the Government of Quebec, Export Development Canada and Investissement Québec have allocated $75 million and $25 million respectively to maturity facilities. BOUCHERVILLE, QC, May 29, 2020 /CNW Telbec/ – Uni-Select Inc. (TSX: UNS) (“Uni-Select” or “Corporation”) announced today that it has successfully secured new credit facilities that provide access to additional liquidity on more flexible financial terms. The new $565 million secured credit facility, maturing on June 30, 2023, consists of a $350 million revolving credit facility with a maturity of $215 million. The new credit facilities can be used for general purposes, providing additional liquidity and flexibility if necessary. “These new credit facilities increase our available liquidity by $100 million to approximately US$220 million and complement the many measures our team has implemented in recent months to address the effects of the pandemic.

In addition, the new credit facilities offer a more favourable contractual structure and greater flexibility to manage our business in the future. We welcome the continued commitment of our existing banking consortium, as well as the support of new financial partners with Export Development Canada and Investissement Québec on behalf of the Government of Quebec. With this recent initiative, combined with the measures already taken, we believe we are well equipped to deal with lingering economic uncertainties,” said Brent Windom, President and CEO, Uni-Select Inc. Uni-Select, which also announces the closure of new 5-year unsecured credit facilities, consisting of a $200 million long-term facility and a $200 million revolving credit facility. These new credit facilities replace Uni-Select institutions, which are expected to be renewed within one year. These credit facilities complement the previously announced offer of $51.8 million in common share underwriting revenues (the “Subscription Receipts”) and $51.8 million in non-convertible subordinated debt securities (the “bonds”), underwritten by a group of insurers led by National Bank Financial Inc., all of which are fully subscribed, including total bonds.