CALGARY, Jan. 25, 2017 /CNW/ - Mosaic Capital
Corporation ("Mosaic") (TSX-V Symbols: M,
M.PR.A and M.DB) is pleased to announce that it has
executed a new credit agreement with ATB Corporate Financial
Services ("ATB") which provides for a $35 million credit facility to Mosaic (the
"Facility"). It replaces Mosaic's $25
million facility with ATB that has been in place since
2014.
The Facility is comprised of a $35
million revolving committed credit facility which is
available for the purposes of acquisitions, day to day operating
requirements and capital expenditures. It is for a 3-year term,
bearing interest at rates ranging from prime plus 0.50% - 1.50% and
is secured by, among other things, a general security agreement and
the assignment of securities that Mosaic holds in certain
subsidiaries.
The Facility includes financial covenants structured to work
with Mosaic's unique capital and corporate structure and positive
working capital position. The primary financial covenants are
as follows:
- Fixed charge coverage ratio – Adjusted EBITDA (defined as gross
EBITDA minus non-controlling interest share of gross EBITDA)
divided by fixed charges (defined as being reduced by a percentage
of cash on hand) must exceed 1.10;
- Total debt to EBITDA – Total debt (defined to exclude the
$50 million debenture which will be
outstanding with Fairfax Financial upon completion of this
previously disclosed financing) divided by gross EBITDA must not
exceed 3.00;
- Net funded debt to Adjusted EBITDA – Total debt (minus cash on
hand) divided by Adjusted EBITDA must not exceed 2.00; and
- Net funded debt to EBITDA at subsidiaries level – individual
subsidiaries must not exceed 1.00 and subsidiaries in aggregate
must not exceed 0.50.
"This credit facility will increase the flexibility of Mosaic in
making acquisitions while maintaining our strong balance sheet,"
commented Mark Gardhouse, CEO.
Mr. Gardhouse added "This facility forms an important part of
the capital resources we need to have in place to execute on
acquisition opportunities as they arise."
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of
established businesses which span a diverse range of industries and
geographies. Mosaic's strategy is to create long-term value for its
shareholders through accretive acquisitions, long-term portfolio
ownership, sustained cash flows and organic portfolio growth.
Mosaic achieves its objectives by maintaining financial discipline,
acquiring businesses at attractive valuations, performing extensive
acquisition due diligence, utilizing optimal transaction
structuring and working closely with subsidiary businesses after
acquisition.
FORWARD-LOOKING INFORMATION
This news release may contain forward-looking information and
statements within the meaning of applicable Canadian securities
laws (herein referred to as "forward-looking statements") that
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. All information and statements in this news release
which are not statements of historical fact may be forward-looking
statements. The words "believe", "expect", "intend", "estimate",
"anticipate", "project", "scheduled", and similar expressions, as
well as future or conditional verbs such as "will", "should",
"would", and "could" often identify forward-looking statements. In
particular, forward-looking statements in this news release
include, but are not limited to: statements with respect to the
terms of the Facility, the completion of the previously disclosed
Fairfax Financial financing and management's views on the benefits
and utilization of the Facility.
Such statements or information are only predictions and reflect
the current beliefs of management with respect to future events and
are based on information currently available to management. Actual
results and events may differ materially from those contemplated by
these forward-looking statements due to these statements being
subject to a number of risks and uncertainties. Undue reliance
should not be placed on these forward-looking statements as there
can be no assurance that the plans, intentions or expectations upon
which they are based will occur.
By their nature, forward-looking statements involve assumptions
and known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions
and other forward-looking statements will not occur. Some of the
assumptions made by Mosaic, upon which such forward-looking
statements are based include, but are not limited to: availability
of the Facility pursuant to its terms and the closing of the
Fairfax Financial financing. A number of factors could cause actual
results to differ materially from those expressed or implied by the
forward-looking statements, and a description of these factors can
be found in Mosaic's annual information form for the year ended
December 31, 2015, a copy of which is
available under Mosaic's profile on SEDAR (www.sedar.com).
Should any of the risks or uncertainties facing Mosaic and its
subsidiaries materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results,
performance, activities or achievements could vary materially from
those expressed or implied by any forward-looking statements
contained in this news release.
Although Mosaic believes that the expectations represented by
any forward-looking statements contained herein are reasonable
based on the information available to it on the date of this news
release, management cannot assure investors that actual results,
performance or achievements will be consistent with these
forward-looking statements. Any forward-looking statements herein
contained are made as of the date of this news release and Mosaic
does not assume any obligation to update or revise them to reflect
new information, events or circumstances, except as required by
law.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE MOSAIC CAPITAL CORPORATION