Business
Dye & Durham Affirms its Liquidity and Addresses Investor Questions About Financial Position
Dye & Durham Affirms its Liquidity and Addresses Investor Questions About Financial Position ...
About this update from Dye & Durham Ltd.
[{"type":"text","content":"\n\n\nDye & Durham Affirms its Liquidity and Addresses Investor Questions About Financial Position\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\nDye & Durham Affirms its Liquidity and Addresses Investor Questions About Financial Position\nCanada NewsWire\n\n\nTORONTO, Oct. 27, 2025 /CNW/ - Dye & Durham Limited (\"Dye & Durham\" or the \"Company\") today issued the following update to address investor inquiries regarding its financial position and progress on the previously announced sale of Credas Technologies Limited (\"Credas\").\nDye & Durham Has Financial Flexibility and the Ability to Pay Debt Service Obligations\nDye & Durham continues to generate positive operating cash flow and maintains sufficient liquidity to service its debt obligations and day-to-day working capital needs. The Company's key financial maintenance covenants provide significant flexibility:\nThe revolving credit facility must be drawn above 35% on the last day of any quarter before the financial maintenance covenant test is triggered; andIf that threshold is met, the Consolidated First Lien Net Leverage Ratio as defined in the Credit Agreement must remain below 5.8x.Both conditions must be met simultaneously for a financial maintenance covenant breach to occur. The revolver can be used freely throughout the quarter for working-capital purposes without impacting financial maintenance covenant compliance.\nThese provisions provide substantial operational flexibility for managing liquidity and day-to-day working capital needs.\nCredas Sale Expected to Close by January; Proceeds to Be Used for Debt Reduction\nThe Credas divestiture reflects Dye & Durham's continued focus on simplifying its portfolio and strengthening its core legal, property, and corporate software platforms.\nThe transaction is expected to close by January 2026 and will generate approximately C$146 million in gross proceeds. The closing of the transaction is subject only to customary closing conditions, including compliance with the notification and approval process of the United Kingdom (UK) Sec...