TORONTO,
Dec. 23, 2014 /CNW/ - Callidus
Capital Corporation ("Callidus" or the "Company")
(TSX: CBL) today provided an update on its business activities.
Growth in Portfolio
We are pleased to report that as at December 23, 2014, our gross loan commitments
totalled $970 million. From those
loan commitments, a total of $823
million has been advanced and remains outstanding. This
represents an increase of $71 million
in loan advances from December 4,
2014, the last date we provided an update, and an increase
of $442 million from December 31, 2013. As previously communicated, it
was our intention to inform the market when the size of the loan
portfolio changed by approximately $65 - $75
million, which may be adjusted as the size of the portfolio
changes.
Callidus' deal pipeline of potential loans has
remained relatively stable with a total value of approximately
$454 million, of which $187 million represents term sheets that have
been signed back by the borrowers. As previously disclosed,
Callidus undertakes extensive due diligence before closing on a
loan transaction and has historically closed on 60% to 80% of
signed back term sheets.
Despite the growth in the loan portfolio, the
actual losses experienced in the portfolio continue to remain below
the level experienced at the time of the Company's initial public
offering - both in absolute amounts and as a percentage of gross
loans receivable - and below amounts previously reserved.
Management believes this reflects its conscious effort to maintain
the credit quality while continuing to grow the business.
Two of the Company's borrowers have emerged, or
are expected to emerge shortly, from normal course court supervised
restructuring processes which management believes has resulted in
an enhanced position for Callidus. In one instance, the
restructuring was undertaken as part of Callidus' original loan
approval process and in the other instance the process was
initiated by Callidus as a means of protecting and improving the
overall value of Callidus' collateral. The latter of these
loans was on Callidus' "watch list" at the time of the Company's
initial public offering and, as a result, the full amount of the
principal is guaranteed by funds managed by The Catalyst Capital
Group Inc. until repayment in full. Management believes that
the successful completion of these strategic filings has benefitted
Callidus.
Expansion of Revolving Senior Credit
Facility
Callidus is currently in the process of expanding
its existing USD $200 million
revolving senior credit facility that matures April 10, 2018. Two major Canadian
chartered banks have committed an aggregate of USD $62.5 million and are expected to join the
syndicate which would increase the facility to USD $262.5 million. The syndication is expected close
in early January 2015. It remains
management's goal to increase this facility as the gross loans
receivables increases.
David Reese Appointed President
Callidus also announced that David Reese, the Chief Operating Officer of the
Company, has been appointed President and Chief Operating Officer
effective as of December 19,
2014.
About Callidus Capital Corporation
Established in 2003, Callidus Capital Corporation
is a Canadian company that specializes in innovative and creative
financing solutions for companies that are unable to obtain
adequate financing from conventional lending institutions. Unlike
conventional lending institutions who demand a long list of
covenants and make credit decisions based on cash flow and
projections, Callidus credit facilities have few, if any, covenants
and are based on the value of the company's assets, its enterprise
value and borrowing needs. Callidus employs a proprietary system of
monitoring collateral and exercising control over the cash inflow
and outflows of each borrower, enabling Callidus to very
effectively manage any risk of loss.
Non-IFRS Measures
This press release contains references to
gross loans receivable, which is not a generally accepted
accounting measure under International Financial Reporting
Standards and therefore the definition used by the Company may
differ from the definition of such term used by other entities. The
Company defines "gross loans receivable" as the sum of (i) the
aggregate amount of loans receivable on the relevant date, (ii) the
loan loss allowance on such date, (iii) the book value of assets
held for sale as they appear on the balance sheet, and (iv)
discounts on loan acquisitions. Management believes that gross
loans receivable is a useful supplemental measure that may assist
purchasers in assessing the financial performance and the cash
anticipated to be generated by the Company's business. Gross loans
receivable should not be considered as the sole measure of the
Company's performance and should not be considered in isolation
from, or as a substitute for, analysis of the Company's financial
statements.
Forward Looking Statements
Certain statements made herein contain
forward-looking information. Forward-looking statements in this
release include those related to expected growth in the loan
portfolio, repayment of the bridge loan and sufficiency of sources
of liquidity. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors and
assumptions that may cause the actual results, performance or
achievements of Callidus, or developments in Callidus' business or
industry, to differ materially from the anticipated results,
performance or achievements or developments expressed or implied by
such forward-looking statements. Such factors and assumptions
include, but are not limited to, Callidus' inability to
successfully originate new loans due to competitive factors or
adverse developments in the asset-based loans market; the
availability of additional financing on acceptable terms, or at
all, being dependent on capital market conditions and the operating
performance of Callidus; the continued availability of funding
under bridge loan facility provided by Catalyst Funds and Callidus'
existing loan facilities; and other factors and assumptions
discussed in the section entitled "Risk Factors" in documents filed
with the Ontario Securities Commission and other securities
commissions across Canada,
including Callidus' prospectus dated April
15, 2014. If any such risks actually occur or assumptions
prove to be incorrect, Callidus' business, financial condition or
results of operations could be materially adversely affected.
Readers are cautioned not to place undue reliance upon any such
forward-looking statements, which are made as at the date of this
press release and Callidus does not undertake any obligation to
update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required by applicable securities
laws.
SOURCE Callidus Capital Corporation