Black Diamond Group Limited Announces Renewal of Asset-Based Credit Facility
December 20 2021
CALGARY, Alberta, Dec. 20, 2021 (GLOBE NEWSWIRE) -- Black Diamond Group Limited (“Black Diamond” or the "Company”) (TSX: BDI), a leading provider of space rental and workforce accommodation, today announced the renewal of its secured asset-based revolving credit facility (“Facility”).
The renewal extends the maturity of the Facility out to October 31, 2026. The lending syndicate is unchanged and is co-led by The Bank of Nova Scotia and Bank of Montreal. There were no changes to the pricing grid and the size of the Facility remains unchanged at $300 million, with an uncommitted accordion of $50 million.
All other major terms of the Facility, including financial covenants, are carried forward and are unaffected by the renewal. The Company is required to maintain a Fixed Charge Coverage Ratio of 1.1 to 1; however, this covenant is only tested in certain instances, such as when draws under the Facility exceed 90% of the borrowing base.
“Our asset-based credit facility has provided the necessary flexibility and liquidity to continue growing our specialty rental platform over the last several years,” said Trevor Haynes, Chief Executive Officer for Black Diamond. “The extended commitment from our syndicate supports our objective to continue to strategically and profitably grow our rental platform amidst a backdrop of strengthening rates and robust utilization.”
About Black Diamond
Black Diamond is a specialty rentals and industrial services Company with two operating business units - Modular Space Solutions (MSS) and Workforce Solutions (WFS). We operate in Canada, the United States, and Australia. MSS through its principal brands, BOXX Modular, Britco, MPA, Schiavi, and Vanguard, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service, and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors. WFS through its principal brands, Black Diamond Camps and Black Diamond Energy Services, owns a large rental fleet of modular accommodation assets of all types and sizes and a fleet of liquid and solid containment assets. Its regional operating terminals rent, sell, service, and provide ancillary products and services including turn-key operated camps to a wide array of customers in the resource, infrastructure, construction, disaster recovery, and education sectors. The WFS business unit also includes the Company’s wholly owned subsidiary, LodgeLink, which operates a digital marketplace for business-to-business crew accommodation, travel, and logistics in North America.