NFI Group Inc. Announces New $845 Million First Lien Senior Credit Facility
Summary
It refinances and replaces the Company?s existing first lien senior term and revolving credit facilities, which had a total combined borrowing limit of approximately $801 million, and will be effective upon completion of certain wire transfers being made within the next day.Loans under the First Lien Facility bear interest at a rate equal to SOFR or U.S. base rate for loans denominated in U.S. dollars, CORRA or a Canadian prime rate for loans denominated in Canadian dollars, SONIA for loans denominated in pounds sterling, and EURIBOR for loans denominated in euros, plus an applicable margin to those rates. There is a minimum liquidity covenant of $50 million that comes into effect as of the end of Third Quarter 2025 and continues for the term of the facility. There are also certain terms and conditions related to permitted debt balances, distributions, investments and other items. There are no limitations on capital expenditures.The First Lien Facility is structured to allow for more relaxed covenants, additional credit enhancements (such as an accordion feature), removal of the minimum liquidity requirement and an extension of the tenor, in the event that the Company enters into certain additional subordinated credit arrangements within the initial two-year term. If completed, the additional subordinated credit arrangements would be used in part to permanently reduce the borrowing limit of the First Lien Facility.