-- High Tide (HITI.V, HITI) signed a term sheet with one of "Canada's Big 5 chartered banks" as its lender in respect of new senior secured credit facilities in the principal amount of $40 million, it said Tuesday.
The new credit facilities will replace its existing senior credit facility with connectFirst Credit Union upon closing. The name of the lender will be disclosed at closing, expected within 60 days subject to satisfaction of customary conditions precedent, it said.
The first committed facility is a $25 million committed revolver facility, to be used to refinance its loan with connectFirst at closing, general working capital or corporate needs, permitted acquisitions and permitted investments, and has a three-year maturity. The balance at connectFirst is expected to be a little over $6 million at closing, resulting in almost $19 million of available room on the revolver facility, the company said.
The second committed facility is a $15 million committed delayed draw term loan to be used to refinance its existing $15 million second-lien debentures. High Tide can elect to draw on this facility at its option, and it will be repaid over a seven-year amortization period.
U.S.-listed shares of the company were last seen down 0.8% at US$2.3997 in pre-market trading.