Type of Program:
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:
- 1Spanning on four years, after which principal is to be repaid as a balloon payment.
- 2Interest payments for the first 12 months will be capitalized and due at maturity loan period: four years.
- 3Interest payments will be made monthly after the maturity of the loan.
- 4This loan is priced higher than the business’ senior operating and term facilities, along with annual increases to interest rate.
- 5Upfront 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.
- 6Restrictions include but are not limited to no shareholder withdrawals, increase in management compensation, share buybacks and no increase in dividends.
- 7The loan will be secured by the business’ assets and its subsidiaries as granted in favour of the Senior Lender.
When It Ends:
December 31, 2021
Applicants must contact their primary financial institution or lending syndicate to see if this program is the right fit for their business and to apply.
The primary lender will then communicate with BDC regarding next steps.
This loan is subject to underwriting and approval by BDC and the primary lender(s) or lending syndicate(s).
Other Things to Note:
The Mid-Market Financing Program was available until or before December 31, 2021 (ended).