TORONTO, July 13, 2015 /CNW/ - Callidus Capital
Corporation ("Callidus" or the "Company") (TSX: CBL), a provider of
flexible and innovative asset-based loans, primarily to distressed
or troubled companies, today provided an update on the growth of
the loan book.
We are pleased to report that as at July 8, 2015, our gross loans receivable were
$1.053 billion, with an aggregate
committed amount of $1.28 billion.
This represents a $143 million or 16%
increase from our position on May 11,
2015 when we reported gross loans receivable of $910 million. Additionally, our pipeline of
potential new loans is currently approximately $800 million. Of particular importance is that
approximately $400 million of the
pipeline represents signed back term sheets, an increase of
$192 million, or 92% from what was
reported as of May 11,
2015.
Of the $1.053 billion of
gross loans receivable mentioned above, approximately $34 million, represented Catalyst's participation
interest in new loans subsequent to March
27, 2015, the first close of Fund V. This $34 million will be derecognized from the
Callidus balance sheet.
Catalyst advises that it expects Fund V to close at or
above its initial target of USD $1.25
billion. At that level, Catalyst is expected to have a 75%
participation interest in new loans. We also expect Catalyst's
participation interest in these new loans to be repurchased by
Callidus within 4 to 6 quarters of the first close of Fund V, (i)
at par, and (ii) with a pro-rata guarantee.
The credit quality of our loans remains sound. We do not
anticipate a material change in our previously disclosed annual
loan loss provision target of 1.5 to 2%.
As stated before, we plan to increase our leverage as our
loan portfolio continues to grow. Total net debt as a percentage of
gross loans receivable was 50% at July 8,
2015 up from 43% as at May 11,
2015.
Going forward, it is our intention to inform the market when the
size of the loan portfolio changes by approximately 10%.
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.
Forward-Looking Statements
Certain statements made herein contain forward-looking
information. Although Callidus believes these statements to be
reasonable, the assumptions upon which they are based may prove to
be incorrect. Furthermore, the forward-looking statements contained
in this press release 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.
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.
SOURCE Callidus Capital Corporation