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Decibel Announces Closing of Non-Dilutive $30 Million Debt Financing
Decibel Announces Closing of Non-Dilutive $30 Million Debt Financing Canada New...
About this update from Decibel Cannabis Company Inc
[{"type":"text","content":"\n \n \n \n Decibel Announces Closing of Non-Dilutive $30 Million Debt Financing\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Jan. 4, 2021\n \n /CNW/ - Decibel Cannabis Company Inc. (the \"Company\" or \"Decibel\") (TSXV: DB) (OTCQB: DBCCF), is pleased to announce that on\n \n December 31, 2020\n \n it closed its previously announced financing with Connect First Credit Union Ltd. in respect of\n \n $30 million\n \n of debt capital.\n \n \n \n \n \n \n \n \n \n \n Financing Highlights\n \n \n \n \n \n Total Capital & Extended Maturity:\n \n The credit facilities includes\n \n $28.5 million\n \n of term debt and a\n \n $1.5 million\n \n authorized overdraft to repay Decibel's existing debt of\n \n $26.8 million\n \n . The credit facilities mature 5 years from the funding date and amortize over a 10 year term (prior debt was on average a 5 year amortization term).\n \n \n \n \n \n Improved Liquidity:\n \n The financing results in\n \n $3.2 million\n \n of immediate gross proceeds and an additional\n \n ~$1 million\n \n of principal repayment savings commencing on\n \n December 31, 2020\n \n . The proceeds will support Decibel's continued sales growth and working capital requirements.\n \n \n \n \n \n Alignment to Operational Schedule:\n \n The credit facilities are aligned to Decibel's operational schedule. The Company will benefit from an interest only period on\n \n $16 million\n \n of the term debt, ending in the third quarter of 2021. Principal savings over this period will provide Decibel flexibility and additional resources to support its growth strategy.\n \n \n \n \n \n Lower Interest Rate:\n \n The committed interest rate under the credit facilities is a 5 year fixed rate of 4.75% for the term debt and Prime + 1.00% for the authorized overdraft. This reflects a blended interest rate reduction of approximately 1.70%, representing approximately\n \n $360 thousand\n \n of annual interest savings for Decibel over the full year 2021.\n \n \n \n \n \n Simplification of Financial Covenants:\n...