DE Decisive Dividend Corporation

KELOWNA, BC, Feb. 12, 2024 /CNW/ - Decisive Dividend Corporation (TSXV: DE) ("Decisive" or the "Corporation") is pleased to announce it is seeking to increase its overall debt capacity by $107 million through a new syndicated credit facility providing for a committed $100 million senior secured revolving term loan and a $75 million accordion facility (the "Credit Facility"). The syndicate is expected to include National Bank of Canada, through National Bank Financial Markets ("National Bank") and Canadian Western Bank, through its wholly-owned division CWB Maxium Financial Inc. ("CWB"), who together would act as co-lead arrangers and joint bookrunners, as well as Royal Bank of Canada ("RBC") and Fédération des caisses Desjardins du Québec ("Desjardins") (collectively the "Syndicate"). It is expected that National Bank will act as administrative agent on behalf of the Syndicate.

The Credit Facility remains subject to completion of customary documentation and, upon becoming effective, will replace the Corporation's current credit agreement with CWB and will represent an increase in overall debt capacity from $68 million to $175 million, providing Decisive with considerable additional liquidity to fund growth in its existing operations as well as through acquisition opportunities, at borrowing costs consistent with the effective interest rate under its current credit agreement.

The Credit Facility is expected to provide for more flexibility as a single senior secured revolving term loan that can be utilized to fund working capital, capital expenditures, and acquisitions, compared to the three separate loan tranches included in the current credit agreement. In addition, the Credit Facility is expected to include a $75 million accordion facility, which the Corporation can request as an increase, in whole or in part, to the total amount available under the Credit Facility. The Credit Facility is expected to be in place for a committed three-year term and the Corporation will be able to request to extend the term of the loan annually.

Rick Torriero, Chief Financial Officer of Decisive, noted:

"Since entering into the credit agreement with CWB in 2021, they have proved to be an excellent financial partner, providing us with the financial capacity and flexibility to achieve the growth we have realized over the last two and a half years. We are thrilled to continue our partnership with CWB and are excited to add National Bank, RBC, and Desjardins to form a group of top tier lending partners, that will provide us with significantly increased financing capacity to continue to pursue our strategic objectives. The amount of capacity and flexibility this syndicated facility will provide, gives Decisive a strong competitive advantage as we look to acquire businesses from our healthy and growing pipeline of potential targets, even as our long-term focus remains on maintaining our target 50/50 debt and equity funding mix."

The Corporation anticipates that definitive documentation will be entered into and the Credit Facility will close in the next two to three weeks. The terms of the Credit Facility set forth in this press release are subject to the terms set forth in the definitive documentation representing the Credit Facility and ancillary matters.

Decisive Dividend Corporation is an acquisition-oriented company, focused on opportunities in manufacturing. The Corporation's purpose is to be the sought-out choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired, and through that, creating sustainable and growing shareholder returns. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established, high quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership.

For more information on Decisive, or to sign up for email notifications of Corporation press releases, please visit www.decisivedividend.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this News Release.

This press release contains forward-looking statements. These statements relate to the terms of the Credit Facility, the timing and closing of the Credit Facility and the potential benefits of the Credit Facility to the Corporation. Forward-looking statements are necessarily based upon a number of expectations and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the Corporation's control and many of which are subject to change. Readers are cautioned to not place undue reliance on forward-looking statements which only speak as to the date they are made. Although management believes that the expectations and assumptions underlying such forward-looking statements are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. A number of factors could cause actual future results, performance, achievements and developments of the Corporation to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information.

SOURCE Decisive Dividend Corporation