Colabor enters new credit agreement, subordinated loan; repays debt

By Taylor Fox

New York, Feb. 18 – Colabor Group Inc. closed its refinancing including a credit agreement, new subordinated loan and repayment of debt, according to a news release.

Colabor entered into a credit agreement for a new first-ranking secured credit facility for a total amount of C$80 million, comprising a revolving credit of C$50 million and a term loan of C$30 million.

The facility bears interest at the cost of funds plus a margin varying between 175 basis points to 325 bps, depending on the company’s leverage ratios and matures in February 2025.

The loan is repayable in the amount of C$3 million per year and includes an accordion allowing the credit facility to be increased by mutual agreement by an additional C$20 million.

Colabor also entered into a C$20 million new subordinated loan with Investissement Quebec of which C$15 million has been disbursed at closing and C$5 million is available until February 2022.

The subordinated loan bears interest at a rate varying between 7.25% and 8.25% depending on financial ratios and has a 5-year term.

Colabor also repaid in full its C$12 million existing subordinated debt with Fonds de solidarite des travailleurs du Quebec.

Colabor intends to use the proceeds from the refinancing to redeem its 6% convertible debentures due Oct. 13, 2021.

Colabor is a Boucherville, Quebec-based food distributor and wholesaler for the hotel, restaurant and institutional markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.