TUCOWS INC /PA/ (TCX): debt financing — Tucows enters $240M revolving credit facility with BMO, replacing RBC facility

TUCOWS INC /PA/

New $240M revolving credit facility with Bank of Montreal as agent, matures September 22, 2026.
Accordion feature allows up to $60M increase if Total Funded Debt to Adjusted EBITDA ratio <3.75:1.
Interest margins and fees vary with leverage: base rate margins 0.25%-2.25%, SOFR/CDOR margins 1.50%-3.50%.
Financial covenants: max leverage ratio 4.50:1 declining to 3.75:1; minimum interest coverage 3.00:1.
Prior $240M RBC facility paid off and terminated upon receipt of backstop letters of credit from BMO.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

TUCOWS INC /PA/ incurred credit facility of $240,000,000 revolving credit facility with Bank of Montreal at Based on Total Funded Debt to Adjusted EBITDA ratio tiers ranging from 1.50% to maturing September 22, 2026.

Instrument: credit facility
Principal: $240,000,000 revolving credit facility
Counterparty: Bank of Montreal
Rate: Based on Total Funded Debt to Adjusted EBITDA ratio tiers ranging from 1.50% to
Maturity: September 22, 2026
Event: incurrence

Exact text from the filing

On September 22, 2023, Tucows Inc. (the “Company”) and its wholly owned subsidiaries, Tucows.com Co., Ting Inc., Tucows (Delaware) Inc., Wavelo, Inc. and Tucows (Emerald), LLC (each, a “Borrower” and together, the “Borrowers,” collectively with the Company, “Tucows”) and certain other subsidiaries of the Company, as guarantors, entered into a Credit Agreement (the “Credit Agreement”) with Bank of Montreal, as administrative agent (“BMO” or the “Agent”), and the lenders party thereto, to, among other things, provide the Borrowers with a revolving credit facility in an aggregate amount not to exceed $240,000,000 (the “Credit Facility”).

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Source: SEC EDGAR

accession 0001437749-23-026646

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