Business Development Bank of Canada (BDC) – Mid-Market Financing Program (2022)
Description:
The Mid-Market Financing Program provides loans ranging between $12.5 million and $60 million for medium-sized businesses particularly impacted by the COVID-19 pandemic and/or the recent decline in oil and gas prices.
Comments on Funding:
Funding is between $12.5 million and $60 million, out of which 90% of the loan amount comes from BDC participation and 10% from the primary lender or lending syndicate.
Loan terms and conditions:
- Spanning on four years, after which principal is to be repaid as a balloon payment.
- Interest payments for the first 12 months will be capitalized and due at maturity loan period: four years.
- Interest payments will be made monthly after the maturity of the loan.
- This loan is priced higher than the business’ senior operating and term facilities, along with annual increases to interest rate.
- Upfront fees of 1.25%, with half payable upon acceptance of term sheet and the other half payable at close, with additional fees paid at each anniversary date on outstanding amounts.
- Restrictions include but are not limited to no shareholder withdrawals, increase in management compensation, share buybacks and no increase in dividends.
- The loan will be secured by the business’ assets and its subsidiaries as granted in favour of the Senior Lender.
Eligibility:
Applicant must:
Other Things to Note:
The Mid-Market Financing Program was available until or before December 31, 2021 (ended).
When It Ends:
Closed
Deadline:
December 31, 2021