Saltire Capital Ltd. Secures Flexible Credit Facility for Growth

Saltire Capital Ltd. (TSX: SLT.U, SLT.WT.U) has announced the closing of a credit facility with National Bank of Canada, providing the company with a revolving credit line of up to US$12 million, plus an additional US$3 million accordion feature. This facility offers Saltire further flexibility in pursuing growth strategies, capitalizing on acquisition opportunities, and managing working capital. The facility has a maturity date of the third anniversary of the Credit Agreement, with interest rates and fees competitive with industry standards.

The secured nature of the credit facility significantly impacts Saltire's risk profile and borrowing costs. By providing a guarantee from its wholly-owned subsidiary, Strong/MDI Screen Systems, Inc. (MDI), and first-ranking liens against Saltire's and MDI's present and future property, Saltire reduces the lender's risk, potentially leading to lower borrowing costs. This security allows National Bank of Canada (NBC) to recover its funds in case of default, making the loan less risky. Consequently, NBC may offer more favorable terms, such as a higher credit limit ($12 million with an additional $3 million accordion feature) and a longer maturity period (three years). This secured facility enables Saltire to maintain a prudent approach to leverage while pursuing growth opportunities, supporting its acquisition strategy and general corporate needs.

The accordion feature in Saltire's credit facility provides additional flexibility in borrowing capacity. This feature allows Saltire to request an increase to the credit limit of up to US$3 million, provided no default has occurred and the agreement is continuing. This flexibility enables Saltire to quickly adapt to changing circumstances, such as new acquisition opportunities or shifts in working capital needs, without having to renegotiate the entire facility. This feature, combined with the revolving basis and CAD/USD draw options, allows Saltire to maintain a prudent approach to leverage while ensuring it has the necessary capital to execute its growth strategy.

The partnership with National Bank of Canada provides Saltire with a revolving credit facility of up to US$12 million, with an additional US$3 million accordion feature. This facility offers Saltire flexibility in capital allocation, enabling it to capitalize on acquisition opportunities and maintain a prudent approach to leverage. The facility's maturity on the third anniversary of the Credit Agreement allows Saltire to plan for long-term growth while managing its debt obligations. The security provided by Saltire's subsidiary, Strong/MDI Screen Systems, Inc., further enhances the credibility of the partnership. This strategic alliance with NBC supports Saltire's growth strategy and strengthens its financial position, ultimately benefiting its long-term financial planning and growth prospects.

In conclusion, Saltire Capital Ltd.'s credit facility with National Bank of Canada offers the company significant flexibility and financial support for its growth strategy. The secured nature of the facility, the accordion feature, and the competitive terms enable Saltire to maintain a prudent approach to leverage while pursuing acquisitions and managing working capital. The partnership with NBC further strengthens Saltire's financial position, supporting its long-term growth prospects.