Entourage Health Corp. ETRGF ENTG (FSE:4WE) has amended and upsized its existing credit facility with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada, providing an additional $30 million in funding availability. The credit facility will be used by Entourage for general working capital purposes as the company continues to execute its commercial goals to achieving sustainable profitable growth.
Credit Facility Terms
The $30 million in funding availability under the credit facility will be made available to Entourage in two equal tranches of $15 million each: the first tranche on October 31, 2022, and the second on January 31, 2023. 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 second position to the company’s senior creditor.
Amended and Restated Credit Facility with Senior Lender
The company also confirmed it executed an updated amended and restated credit facility agreement with its senior lender, the Bank of Montreal BMO. The amended and restated credit agreement reflects all prior amendments made, including the extension of the maturity date to June 30, 2024, and this new additional funding availability under the credit facility.
Price Action
Entourage Health shares were trading 7.99% lower at $0.0311 per share at the time of writing Monday morning.
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