Decisive Dividend upsizes credit facility to $200 million
Decisive Dividend Corporation increased its revolving credit facility to $200 million and extended the term to June 2029, with interest rates lowered by 0.25%. The facility includes a $125 million committed portion and a $75 million accordion, featuring variable interest rates and no principal payments until maturity.
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Decisive Dividend Corporation has increased its revolving credit facility by $25 million to an aggregate of $200 million and extended the term of the agreement by one year to June 2029. The extension maintains the committed three-year term of the credit facility, and all drawn amounts now mature in June 2029. Additionally, the senior lenders agreed to lower the interest rates on the facility by 0.25%.
With the upsize, Decisive currently has nearly $50 million in available capacity under the $125 million committed portion of its credit facility, plus an available $75 million accordion, which the Corporation can request as an increase when needed. The facility is fully revolving and can be utilized to fund working capital, capital expenditures, and acquisitions.
Credit Facility Details
The revolving credit facility features variable interest rates tiered based on leverage ratios, with a current effective rate of 5.2%. There are no required principal payments for the committed three-year term, and all drawn amounts mature in June 2029 with annual extension provisions. No fees are charged on the $75 million accordion until it is drawn.
| Feature | Details |
|---|---|
| Total Facility | $200 million |
| Committed Portion | $125 million |
| Accordion Feature | $75 million |
| Maturity | June 2029 |
| Current Effective Rate | 5.2% |
Lending Syndicate and Covenants
The top-tier lending syndicate includes the National Bank of Canada as the administrative agent, along with the Royal Bank of Canada and Fédération des caisses Desjardins du Québec. Financial covenants include a total debt to adjusted EBITDA ratio threshold of 3.5:1 and an interest charge coverage ratio threshold of 1.5:1.
Specific thresholds for the 12 months following the acquisition of Be Fire include a 4.0:1 total debt to adjusted EBITDA ratio. Proforma figures as of March 31, 2026, including the Be Fire acquisition, show a 2.7:1 debt to adjusted EBITDA ratio and a 2.3:1 interest charge coverage ratio.
Rick Torriero, Chief Financial Officer of Decisive, stated that the upsize and improved pricing demonstrate the lenders' commitment to supporting the Corporation's objectives. He noted that the facility provides ample liquidity to fund growth in current operations and acquisitions, offering funding certainty to vendors in M&A markets.
How does Decisive Dividend Corporation plan to utilize the increased liquidity to identify and execute potential acquisitions?
What impact will the lower interest rates have on the company's overall cost of capital and profitability?
How might the extended credit facility term influence the company's long-term strategic planning and capital allocation?
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