- Increases Credit Facility to $420M and extends term to October 2023, including an existing $20M Term Loan unchanged to May 2021
- Ability to access incremental commitments up to an additional $100M, subject to predetermined conditions
- Existing sub-debt of $40M unchanged to October 2023
- Provides Increased Operational and M&A Flexibility
MONTREAL, Oct. 09, 2020 (GLOBE NEWSWIRE) -- Stingray Group Inc (TSX: RAY.A; RAY.B) (“Stingray”), a leading music, media and technology company, today announced that it has successfully completed the increase and extension of its existing credit facilities, providing additional liquidity for operations and M&A activities with improved terms and conditions. The $420 million credit facilities consist of a $325 million revolving credit facility and a $75 million term loan, both maturing in October 2023, and the pre-existing $20 million term loan, maturing in May 2021. The renewed terms add incremental commitments up to $100 million upon request, subject to predetermined conditions. The pre-existing sub debt of $40 million maturing in October 2023 combined with the new credit facilities described above accounts for total flexibility of up to $560 million.
“We are pleased to have the continued commitment from our existing banking syndicate and partners as we pursue growth opportunities,” said Eric Boyko, President, Co-founder, and CEO of Stingray. “This new financing significantly increases our existing liquidity and allows for additional commitments upon request complementing the measures our team have put in place through this pandemic to ensure we continue to assess and realize upon opportunities in the marketplace.”
The new credit facilities of $420 million are provided by a syndicate of banks led by National Bank of Canada as Sole Lead Arranger and Bookrunner, and comprised of Bank of Montreal, Fédération des Caisses Desjardins, Canadian Imperial Bank of Commerce , The Toronto-Dominion Bank, Royal Bank of Canada, Scotiabank, HSBC Bank Canada, Business Development Bank of Canada and Investissement Québec.
About Stingray
Montreal-based Stingray (TSX: RAY.A; RAY.B) is a leading music, media, and technology company with over 1,200 employees worldwide. Stingray is a premium provider of curated direct-to-consumer and B2B services, including audio television channels, more than 100 radio stations, SVOD content, 4K UHD television channels, karaoke products, digital signage, in-store music, and music apps, which have been downloaded over 150 million times. Stingray reaches 400 million subscribers (or users) in 156 countries. For more information: www.stingray.com.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities law. Such forward-looking information includes, but is not limited to, information with respect to Stingray's goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", and "continue", or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Stingray's control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in Stingray's Annual Information Form for the year ended March 31, 2020, which is available on SEDAR at www.sedar.com. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that Stingray anticipates will be realized or, even if substantially realized, that they will have the expected consequences or effects on Stingray's business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and Stingray does not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.
For more information, please contact:
Mathieu Péloquin
Senior Vice-President, Marketing and Communications
Stingray
1 514-664-1244, ext. 2362
mpeloquin@stingray.com