Lumine Group Announces Completion of US$185M Debt Facility in Connection with Previously Announced WideOrbit Acquisition
TORONTO, March 2, 2023 - Lumine Group Inc. ("Lumine Group" or the "Company"), a global acquirer of communications and media software companies, today announced that its wholly-owned indirect subsidiary, WideOrbit Inc. (“WideOrbit”), has entered into a revolving financing facility with a syndicate of Canadian and US financial institutions amounting to US$185,000,000 to provide long-term financing in connection with the previously announced acquisition of WideOrbit, a US-based media vertical market software provider. The debt facility also includes a US$5,000,000 operating line as well as a US$75,000,000 uncommitted accordion to grow the facility if required.
Covenants associated with this facility will be based on the financial position and financial performance of WideOrbit. The covenants include a maximum leverage ratio and fixed charge coverage ratio. The loan has a maturity date of March 2, 2028 and bears an interest rate of SOFR plus applicable spreads based on the leverage ratio. Lumine Group has not guaranteed this debt, nor are there any cross-guarantees between other subsidiaries under Lumine Group. The credit facility is collateralized by substantially all of the assets of WideOrbit.
The syndicate of lenders is led by Royal Bank of Canada and also includes Wells Fargo, Silicon Valley Bank, The Toronto-Dominion Bank, and Fédération des Caisses Desjardins du Québec.
Forward Looking Statements
Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual events to be materially different from any future events expressed or implied by such forward -looking statements. Words such as “may”, “will”, “expect”, “believe”, “plan”, “intend”, “should”, “anticipate” and other similar terminology are intended to identify forward looking statements. Such forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future results, and will not necessarily be accurate indications of whether or not such results will be achieved, or when such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and are made as of the date hereof and Lumine Group assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances. Additional information about the risks and uncertainties of the Company's business and material factors or assumptions on which information contained in forward–looking statements is based is provided in its disclosure materials, which are available under our profile on SEDAR at www.sedar.com.
About Lumine Group
Lumine Group acquires, strengthens, and grows vertical market software businesses in the Communications and Media industry. Learn more at www.luminegroup.com.
For further information, contact:
David Nyland, Chief Executive Officer