Entourage And LiUNA Pension Fund Close On $15M Of Debt Financing

Entourage Health Corp. ETRGF ENTG (FSE:4WE) has successfully closed the second $15 million tranche of its upsized credit facility with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada, as announced on October 31, 2022. The credit facility will be used by Entourage for general working capital purposes as the company continues to execute its commercial goals to achieve profitable growth by the end of 2023.

Amended and Restated Credit Agreement

Concurrent with the closing, the company and LPF entered into an amended and restated credit agreement in connection with the credit facility, which reflects amendments to the credit facility up to and including the date of the ARCA, as well as revised financial covenants consistent with the amendments to the company’s senior secured credit agreement; namely:

• The EBITDA target covenant was modified to reflect the company’s updated strategic plan as announced by the company on November 15, 2022;

• The liquidity covenant was amended to provide that the company must maintain liquidity coverage of not less than $5 million at all times;

• Additional security in the form of $2 million must be maintained in a blocked account held by the senior lender, which can be applied against the company’s senior secured credit facility in certain events.

Credit Facility Terms

The credit facility continues to bear an interest rate of 15.25% with the option, at the company’s discretion, to capitalize interest in lieu of cash payments of interest and is set to mature on December 31, 2024. The credit facility is secured by the assets of the company and its subsidiaries, including the company’s production facilities, and contains customary financial and other covenants, as well as typical conditions precedent for a transaction of this nature. LPF’s security under the credit facility is in the second position to the company’s senior creditor.

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