DATA Communications Management Corp. Announces Amended Senior Revolving Credit Facility

Business Wire

4 days ago

BRAMPTON, Ontario--(BUSINESS WIRE)--DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) ('DCM' or the "Company"), a leading Canadian provider of print and digital solutions that help simplify complex marketing communications and workflow, announced today that it has entered into a fourth amended and restated credit agreement (the 'Bank Credit Facility') with a Canadian chartered bank (the 'Bank'), extending the maturity date of its senior secured revolving credit facility to May 31, 2028. The Bank Credit Facility also includes an expanded leasing facility to finance future equipment purchases (the 'Equipment Leasing Facility') along with a number of reporting enhancements.
MANAGEMENT COMMENTARY
"We are pleased to complete this transaction which provides us with increased flexibility to invest in the growth of the business and execute on our strategic priorities," said Richard Kellam, President and CEO of DCM. "We appreciate the continued support of our senior bank credit partner and confidence in our strategic direction."
KEY TERMS OF AMENDED BANK CREDIT FACILITY
The maturity of the Bank Credit Facility has been extended by two years to May 31, 2028 (previously May 31, 2026). The maximum principal amount available under the Bank Credit Facility remains $90 million. The 'accordion' feature, which can provide up to an additional $20 million capacity under the revolving facility, also continues. The Bank Credit Facility is available to be drawn by way of either Prime Rate loans, Base Rate loans, Canadian Overnight Repo Rate Average (CORRA) loans, Secured Overnight Financing Rate (SOFR) loans, and/or Letters of Credit.
The Bank Credit Facility includes a treasury management facility of up to $5 million to manage foreign exchange and interest rate risk, and a corporate credit card facility to of up to $750,000 to fund business expenses and general corporate expenses. Under the terms of an expanded equipment leasing facility, DCM is able to fund up to $10 million of additional capital to finance the purchase price of capital equipment over the term of the Bank Credit Facility.
The Bank Credit Agreement features additional flexibility for the Company in its reporting to the Bank compared to its prior credit facility, including a basket for permitted acquisitions of up to $10 million, and permitted distributions including share buy-backs, dividends, and other distributions, subject to certain conditions. All other terms and conditions of the Bank Credit Facility remain materially unchanged.
The terms and conditions of the Bank Credit Facility are set out in the Fourth Amended and Restated Credit Agreement that will be filed on SEDAR+.
About DATA Communications Management Corp.
DCM is a leading Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. DCM serves over 2,500 clients including 70 of the 100 largest Canadian corporations and leading government agencies. Our core strength lies in delivering individualized services to our clients that simplify their communications, including customized printing, highly personalized marketing communications, campaign management, digital signage, and digital asset management. From omnichannel marketing campaigns to large-scale print and digital workflows, our goal is to make complex tasks surprisingly simple, allowing our clients to focus on what they do best.
Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on SEDAR+.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute 'forward-looking' statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. When used in this press release, words such as 'may,' 'would,' 'could,' 'will,' 'expect,' 'anticipate,' 'estimate,' 'believe,' 'intend,' 'plan,' and other similar expressions are intended to identify forward-looking statements. These statements reflect DCM's current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release.
These forward-looking statements involve a number of risks, uncertainties, and assumptions. They should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward-looking statements. We caution readers of this press release not to place undue reliance on our forward-looking statements since a number of factors could cause actual future results, conditions, actions, or events to differ materially from the targets, expectations, estimates or intentions expressed in these forward-looking statements.
The principal factors, assumptions and risks that DCM made or took into account in the preparation of these forward-looking statements and which could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are described in further detail in our most recent annual and interim Management Discussion and Analysis filed on SEDAR+, and include but are not limited to the following: industry conditions are influenced by numerous factors over which the Company has no control, including: declines in print consumption; labour disruptions at suppliers and customers, including Canada Post; the impact of tariffs and responses thereto (including by governments, trade partners and customers), which may include, without limitation, retaliatory tariffs, export taxes, restrictions on exports to the U.S. or other measures, increases in the cost of our input costs, and the effect of governmental regulations and policies in general; our ability to achieve and meet our revenue, profitability, free cash flow and debt reduction targets for 2025 and in the future; while we have received consents from our lenders for the declaration and payment of the special dividend and regular recurring dividend, including the exclusion of the special dividend from our fixed charge coverage ratios, our financial leverage may increase, and there is no guarantee that we will pay such dividends in the future; and, our ability to comply with our financial and other covenants under our credit facilities, which may preclude us from paying future dividends if our outlook and future financial liquidity changes.
Additional factors are discussed elsewhere in this press release and under the headings "Liquidity and capital resources" and 'Risks and Uncertainties' in DCM's Management Discussion and Analysis and in DCM's other publicly available disclosure documents, as filed by DCM on SEDAR+.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward-looking statements.