/NOT FOR DISSEMINATION IN THE
UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
TORONTO,
April 23, 2014 /CNW/ - Callidus
Capital Corporation ("Callidus") (TSX: CBL), a provider of flexible
and innovative asset-based loans, is pleased to announce that it
has successfully completed an initial public offering (the
"Offering") of 18,000,000 common shares of Callidus ("Common
Shares") at a price of $14.00 per
Common Share for aggregate gross proceeds of $252 million.
The Common Shares trade on the Toronto Stock
Exchange under the symbol "CBL". Upon closing of the Offering
there are 45,991,297 Common Shares issued and
outstanding.
Callidus has also entered into a new loan
financing and servicing agreement (the "Credit Facility"). The
Credit Facility provides for a revolving credit facility in an
amount up to US$200 million. The
revolving period is for an initial period of two years (and may be
extended upon mutual agreement of parties) and the amortization
period will be for a period of two years following the last day of
the revolving period.
Catalyst Fund Limited Partnership II (together
with a parallel fund), Catalyst Fund Limited Partnership III and
Catalyst Fund Limited Partnership IV (the "Catalyst Funds") which
are managed by The Catalyst Capital Group Inc. ("CCGI") benefically
own 27,991,297 Common Shares, representing approximately 60.86% of
the outstanding Common Shares. In connection with the Offering, the
Catalyst Funds and CCGI entered into lock-up agreements pursuant to
which they agreed not to sell any of the Common Shares for a period
of either (i) 180 days; or (ii) the later of two years after the
date hereof and the date on which CCGI or its affiliates would
become entitled to such Common Shares pursuant to the provisions of
the partnership agreement of the applicable Catalyst Fund (or, if
CCGI does not become entitled to such Common Shares with respect to
a particular Catalyst Fund, on the date such fund has disposed of
substantially all of its investments), following the date hereof,
subject to certain limited exceptions.
The Offering was made through a syndicate of
underwriters led by Canaccord Genuity Corp. and including CIBC
World Markets Inc., TD Securities Inc., National Bank Financial
Inc., GMP Securities L.P., Desjardins Securities Inc., and Dundee
Securities Ltd. (collectively, the "Underwriters").
The Underwriters have been granted an
over-allotment option (the "Over-Allotment Option") to purchase up
to an additional 2,700,000 common shares from Callidus at a price
of $14.00 per share. If the
Over-Allotment Option is exercised in full, the aggregate gross
proceeds to Callidus pursuant to the Offering will increase to
$289.8 million. The Over-Allotment
Option can be exercised for a period of 30 days from the date
hereof.
No securities regulatory authority has either
approved or disapproved the contents of this press release. This
press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities of Callidus Capital
Corporation in any jurisdiction in which such offer, solicitation
or sale would be unlawful. These securities have not been and will
not be registered under the United
States Securities Act of 1933, as amended or any U.S. state
securities law and may not be offered or sold in the United States except in compliance with
the registration requirements of said Act and applicable U.S. state
securities laws or pursuant to an exemption therefrom.
About Callidus Capital Corporation
Established in 2003, Callidus Capital
Corporation is a Canadian company that specializes in innovative
and creative financing solutions for companies that are unable to
obtain adequate financing from conventional lending institutions.
Unlike conventional lending institutions who demand a long list of
covenants and make credit decisions based on cash flow and
projections, Callidus credit facilities have few, if any, covenants
and are based on the value of the company's assets, its enterprise
value and borrowing needs. Callidus employs a proprietary
system of monitoring collateral and exercising control over the
cash inflow and outflows of each borrower, enabling Callidus to
very effectively manage any risk of loss.
Forward-Looking Statements
Certain statements made herein contain
forward-looking information, including statements concerning the
exercise of the Over-Allotment Option and the related increase in
the aggregate gross proceeds to Callidus under the Offering.
Although Callidus believes these statements to be reasonable, the
assumptions upon which they are based may prove to be incorrect.
Furthermore, the forward-looking statements contained in this press
release are made as at the date of this press release and Callidus
does not undertake any obligation to update publicly or to revise
any of the included forward-looking statements, whether as a result
of new information, future events or otherwise, except as may be
required by applicable securities laws.
SOURCE Callidus Capital Corporation