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Zedcor Inc. Announces New Increased $50 Million Credit Facility
Calgary, Alberta--(Newsfile Corp. - October 6, 2025) - Zedcor Inc. (TSXV: ZDC) ("Zedcor" or ...
About this update from Zedcor Inc
[{"type":"text","content":"Zedcor Inc. Announces New Increased $50 Million Credit FacilityCalgary, Alberta--(Newsfile Corp. - October 6, 2025) - Zedcor Inc. (TSXV: ZDC) (\"Zedcor\" or the \"Company\") is pleased to announce that it has entered into an agreement for a new $50 million revolving credit facility (the \"Credit Facility\") with National Bank of Canada (\"National Bank\"), its new primary lending partner. The Credit Facility replaces the Company's previous $30 million credit facility and provides access to $23.2 million of additional committed capital to fund Zedcor's growth initiatives. Proceeds from the Credit Facility will be used to refinance existing debt of $26.8 million, fund organic growth initiatives, support working capital, and for other general corporate purposes.Entering into the Credit Facility significantly increases Zedcor's access to non-dilutive capital, strengthening the Company's balance sheet and positioning it to continue executing on its strategic growth plan. The Credit Facility requires monthly interest-only payments, providing enhanced financial flexibility at a more efficient cost of capital.Highlights of the Credit Facility Include:Expanded Capital Availability: Increases available debt capacity to $50 million, up from $30 million under prior facilities, with an accordion feature for an additional $25 million. The accordion feature is not subject to fees until drawn.Extended Maturity: The new facility matures three years from closing, compared with the previous facility's December 2027 maturity.Supportive Covenants: Net Funded Debt to EBITDA of 3.5x and a Fixed Charge Coverage Ratio of 1.15x, providing greater operating flexibility.Improved Interest Rate: Interest rate reduced by approximately 75 basis points annually, depending on the Company's leverage ratio.The Credit Facility is secured with a first charge over the Company's present and future assets, and other standard financial and non-financial security consistent with the previous facility. Given the Company's current financial position and projected financial performance, together with its expectations regarding interest rates, Zedcor expects the Credit Facility to immediately lower its interest payable by approximately 75 bps from Prime + 1.5% under the previous facility to Prime + 0.75% under the new Credit Facility. Todd Ziniuk, President and CEO of Z...