TORONTO, April 27, 2022 /CNW/ – Pluribus Technologies Corp. (TSXV: PLRB) (the “Company“) announced today that it has reached an agreement for a further three-year term, $42.0 million credit facility (the “New facility“) with the National Bank of Canada. The new facility replaces existing Pluribus facilities which were due to expire at various intervals between 2022 and 2024.
“This new facility, combined with proceeds from our recent financing and listing on the TSX Venture Exchange, provides us with increased flexibility to pursue acquisitions by leveraging a combination of cash, debt and equity,” said Richard Adair, CEO of Pluribus Technologies. “Having already made two acquisitions in 2022, we expect to be able to achieve the same pace of acquisitions as in 2021.”
The New Installation offers Pluribus a $3.0 million Revolving credit facility, a $24.0 million Non-revolving term loan and a $15.0 million Deferred draw term loan. The Company intends to use the New Facility to refinance indebtedness 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, and 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 commitment to maintain a total debt to EBITDA ratio of 3.5 times or less and a fixed charge coverage ratio of 1.15 or greater at all times. Following a first draw on the new facility to refinance existing debt and partially fund recent acquisitions, Pluribus expects to have approximately $18 million available under the New Facility The New Facility is modeled on grid-based pricing with the interest rate dependent on Pluribus’ Total Debt to EBITDA ratio. Based on Pluribus’ current total debt to EBITDA ratio, initial borrowings are priced at prime rate plus 1.00% for Canadian dollar loans and US base rate plus 1.00% for dollar loans Americans. A copy of the new facility will be available under Pluribus’ profile on SEDAR at www.sedar.com.
About Pluribus Technologies Corp.
Pluribus is a technology company that is a value-based acquirer of profitable small business-to-business technology companies across a range of verticals and industries. Pluribus offers its acquisitions access to experienced sales and marketing resources, strategic partnership opportunities, a diverse portfolio of customers in different geographic markets, and enabling technologies to create new revenue streams and offer these companies the opportunity to grow in their respective markets.
For more information, visit: https://www.pluribustechnologies.com/.
Caution Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements”. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements or developments of the Company to differ materially from any anticipated results, performance or achievements expressed or implied by these forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations, including the risks detailed from time to time in documents filed by the Company under applicable Canadian securities laws.
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Chief executive officer
Pluribus Technologies Corp.
1 (800) 851-9383
SOURCE Pluribus Technologies Corp.