Blackline Safety Signs Term Sheet with ATB Financial to Provide $15 Million Credit Facility
23 August 2022 - 6:33AM
Business Wire
Blackline Safety Corp. (the "Company") (TSX: BLN) a global
leader in connected safety, today announced it has signed a
non-binding term sheet for a new two-year $15 million senior
secured operating facility — with a potential $5 million accordion
feature to increase the size of the facility — with ATB Financial.
The new credit facility contemplated by the term sheet will, upon
and subject to the execution of definitive credit documents,
replace the Company’s existing senior secured credit facility with
another lender. The current facility was not renewed on the terms
presented by the lender and no amounts are currently drawn or
outstanding on such facility.
The new facility is expected to provide improved financial
flexibility to help the Company manage its operations, while
building on its 21 consecutive quarters of revenue growth. The
borrowing base under the new facility will be derived from the
Company’s monthly recurring revenue with pricing that is largely
consistent with the current facility. The new operating facility
will be secured, including by a general security agreement over the
property of both Blackline Safety Corp. and its significant
subsidiaries.
"We are appreciative of the support ATB Financial is providing
through this new credit facility, which we believe is especially
noteworthy considering the current lending environment where many
companies are being asked for stricter covenants and tighter
capital availability," said Shane Grennan, Chief Financial Officer
of Blackline Safety.” We look forward to finalizing this facility
in the coming weeks which, coupled with proceeds from our recently
announced bought deal financing and concurrent non-brokered private
placement that is expected to close on or about August 31, 2022,
will provide us with a more robust capital position to execute our
business plan. We would like to thank our previous lender for their
support and working relationship over the past two years.”
"The technology sector is a key growing area for the Alberta
economy," said Darren Eurich, CEO ATB Capital Markets & Senior
Vice President, Business, ATB Financial. “We are excited to partner
with Blackline Safety, an Alberta-based global technology company,
through this proposed facility and provide them with the capital
resources to continue to expand and innovate in their
business."
The credit facility is subject to various conditions including
the Company raising gross proceeds of not less than $15 million
from the Company's recently announced bought deal financing and
concurrent non-brokered private placement and the entering of
binding definitive agreements in respect of the same.
About Blackline Safety
Blackline Safety is a technology leader driving innovation in
the industrial workforce through IoT. With connected safety devices
and predictive analytics, Blackline enables companies to drive
towards zero safety incidents and improved operational performance.
Blackline provides wearable devices, personal and area gas
monitoring, cloud-connected software and data analytics to meet
demanding safety challenges and enhance overall productivity for
organizations with coverage in more than 100 countries. Armed with
cellular and satellite connectivity, Blackline provides a lifeline
to tens of thousands of people, having reported over 185 billion
data-points and initiated over five million emergency alerts. For
more information, visit BlacklineSafety.com and connect with us on
Facebook, Twitter, LinkedIn and Instagram.
Note Regarding Forward-Looking Statements
This press release contains certain forward–looking information
and statements within the meaning of applicable securities laws.
The use of any of the words "expect", "anticipate", "continue",
"estimate", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify
forward-looking information or statements. In particular, but
without limiting the forgoing, this press release contains
statements concerning the anticipated terms of the new credit
facility, the expected use of the credit facility and the potential
benefits thereof; the closing of financing described herein, the
conditions to entering into the new credit facility and the
entering into of a definitive agreement in respect of the new
credit facility. Although Blackline believes that the expectations
reflected in these forward-looking statements are reasonable, undue
reliance should not be placed on them because Blackline can give no
assurance that they will prove to be correct. Since forward looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. The terms of
the new credit facility may change, the Company may not enter into
a binding agreement in respect of the new credit facility in a
timely manner, or at all, the Company may not complete the other
financing transactions described herein, the Company may not have
any credit arrangements to funds its financing plans, the amounts
that may be available for borrowing under the new credit facility
may change from time to time, the closing date for the financings
described herein may be changed and, in the event the Company is
subject to the new credit facility, the Company will be subject to
the terms and conditions thereof, and any default thereunder may
cause an acceleration of repayment of any amounts borrowed
thereunder and if the Company was unable to repay amounts owing
thereunder, the lender under the new credit facility (could proceed
to foreclose or otherwise realize upon the collateral granted to
them to secure such indebtedness. The forward looking statements
contained in this press release are made as of the date hereof and
Blackline undertakes no obligations to update publicly or revise
any forward looking statements or information, whether as a result
of new information, future events or otherwise, unless so required
by applicable securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220822005685/en/
INVESTOR/ANALYST CONTACT Matt Glover and Jeff Grampp, CFA
investors@blacklinesafety.com Telephone: +1 949 574 3860 MEDIA
CONTACT Christine Gillies, CMO cgillies@blacklinesafety.com
Telephone: +1 403 629 9434
Blackline Safety (TSX:BLN)
Historical Stock Chart
From Apr 2024 to May 2024
Blackline Safety (TSX:BLN)
Historical Stock Chart
From May 2023 to May 2024