Spark Power Announces Details of $90 Million Debt Facilities
OAKVILLE, ONTARIO – October 1, 2018 – Spark Power Group Inc. (TSX: SPG, SPG.WT), parent company to Spark Power Corp. (“Spark Power” or the “Company”), a leading independent electrical power services and solutions company, today announced the details of its $90 million secured debt facilities with the Bank of Montreal. The funding package includes a $44.0 million Committed Term Debt Facility, a $25.0 million Acquisition Facility, a $20.0 million Revolving Line of Credit Facility and a Credit Card Facility, (together, the “Facilities”). The Facilities replaced and consolidated the Company’s previous credit facilities under a single lender.
The Term Debt Facility was used to repay all of Spark Power’s existing long-term debt and a significant portion of its promissory notes that arose through previous business acquisitions. The Acquisition Facility is available to fund future acquisitions and the Revolving Line of Credit Facility will support the working capital needs of Spark Power, including growth working capital as the Company scales organically. The Acquisition Facility is undrawn and there is significant capacity on the Revolving Line of Credit to meet the growing working capital needs of the business.
“We have secured an enhanced funding solution that consolidates our debt under a single lender, at more favourable rates than our previous arrangement offered,” said Jason Sparaga, co-founder and co-CEO, Spark Power Corp. “These new facilities will offer us improved financial flexibility as we execute on our dual-pronged growth strategy, particularly as we target complementary tuck-in acquisitions and work to drive organic growth.”
About Spark Power Corp.
Spark Power is a leading independent electrical power services and solutions company serving more than 6,500 industrial, commercial, institutional, renewable and agricultural customers, as well as utility markets including municipalities, universities, schools and hospitals across North America. For more information, visit us at www.sparkpower.ca.
Caution Regarding Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect Spark Power’s current expectations regarding future events. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate” and other similar expressions. These statements are based on Spark Power’s expectations, estimates, forecasts and projections and include, and include, without limitation, statements regarding the future success of the Company’s business and potential expansion of the business and include, without limitation, statements regarding the growth of Spark Power’s business and execution of its business strategy by Messrs. Sparaga and Clark.
The forward-looking statements in this news release are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, Spark Power assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.