- Kontrol (KNR) is announcing a $50M senior secured credit agreement with a Schedule 1 bank
- Monthly interest is set at Bank Prime plus a 1.25-2 per cent margin
- The company will use the funds to consolidate debt, manage working capital and support M&A activities
- Kontrol Technologies is a leader in smart buildings and cities through IoT, cloud and SaaS technology
- Kontrol (KNR) is up by 9.6 per cent trading at $1.37 per share
Kontrol (KNR) is announcing a $50M senior secured credit agreement with a Schedule 1 bank.
The agreement consists of the following:
- A term loan facility of up to $20M
- A revolving credit facility of up to $10M, subject to borrowing requirements based on receivables and inventory
- An accordion feature of up to $20M
Monthly interest is set at Bank Prime plus a 1.25-2 per cent margin, while principal repayments under the term loan will equal 1.25 per cent of the drawn amount, payable quarterly.
Kontrol will use the term loan to pay off an operating credit line and refinance its unsecured debentures maturing in FYQ4. It will use the revolver for liquidity to manage working capital needs. The accordion, for its part, will support M&A initiatives.
The transactions are secured by a general security agreement and company guarantees.
Echelon Capital Markets acted as Kontrol’s exclusive advisor.
Upon closing, Kontrol expects to have drawn approximately $6M on the term loan.
“These facilities will streamline the balance sheet by consolidating debt and lowering the company’s cost of capital,” stated Paul Ghezzi, Kontrol’s CEO. “It will also add capacity for M&A that provides financial flexibility to allow capital deployment in a timely manner as we execute on potential acquisitions.”
Kontrol Technologies provides solutions and services to improve energy management, monitor continuous emissions and accelerate the sustainability of any building.
Kontrol (KNR) is up by 9.6 per cent trading at $1.37 per share as of 1:34 pm EST.