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Mosaic Capital Corporation Executes New Banking Agreement with ATB Corporate Financial Services for $35 million Credit Facility
Mosaic Capital Corporation Executes New Banking Agreement with ATB Corporate Financial Ser...
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[{"type":"text","content":"\n\n\n\nMosaic Capital Corporation Executes New Banking Agreement with ATB Corporate Financial Services for $35 million Credit Facility\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\nCanada NewsWire\nCALGARY, Jan. 25, 2017\n\n\n\nCALGARY, 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.\n\nThe 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.  \n\nThe 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:\n\n\nFixed 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; \nTotal 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; \nNet funded debt to Adjusted EBITDA – Total debt (minus cash on hand) divided by Adjusted EBITDA must not exceed 2.00; and \nNet funded debt to EBITDA at subsidiaries level – individual subsidiaries must not exceed 1.00 and subsidiaries in aggregate must not exceed 0.50. \n \n\n\"This credit facility will increase the flexibility of Mos...