DH Corporation Announces Agreements to Amend Debt Covenants with Lenders and Private Noteholders

TORONTO, Nov. 10, 2016 /CNW/ - DH Corporation (TSX:DH) ("D+H" or the "Company"), a leading provider of technology solutions to domestic and global financial institutions, today announced that it has entered into amended agreements with its syndicate of lenders and private noteholders regarding the step down of its Total Net Funded Debt to EBITDA ratio covenants.

Under the amendments, the Company is required to maintain Total Net Funded Debt to EBITDA Ratios (as defined therein) of:

  • less than or equal to 3.50 to 1 for each fiscal quarter up to and including the fiscal quarter ending September 30, 2017;
  • less than or equal to 3.35 to 1 for the quarter ending December 31, 2017;
  • less than or equal to 3.25 to 1 for each fiscal quarter thereafter, up to and including the fiscal quarter ending June 30, 2018 ; and
  • less than or equal to 3.00 to 1 for each fiscal quarter thereafter.

There is no change to the applicable margin as set forth in the credit facility consisting of a revolving, non-amortizing credit facility in the amount of CAD$550 million (of which CAD$223.3 million was outstanding as at September 30, 2016) and of a non-revolving, non-amortizing term credit facility in the amount of US$512.6 million (outstanding as at September 30, 2016).   The rate of interest payable with respect to the private notes outstanding in the aggregate amounts of USD$399.5 million and CAD$100.0 million, respectively, is increasing by 25 bps with effect in the fourth quarter of 2016 through June 30, 2018. Further, the Company has paid amendment fees in the fourth quarter of 2016 to our lenders and noteholders totaling approximately CAD$0.8 million.

"These changes effectively extend the current 3.50 to 1 Total Net Funded Debt to EBITDA ratio to September 30, 2017, with a measured step down of the ratio to 3.0 to 1 by the end of the third quarter of 2018. We are pleased to have reached agreements with our lenders and note holders regarding our covenant amendments." said Karen Weaver, Chief Financial Officer.  "D+H has strong relationships with our lenders and noteholders, and all of the institutions in our facilities have worked with us on timely basis to support and implement these amendments."   

D+H's financial results are prepared in accordance with International Financial Reporting Standards ("IFRS"). Total Net Funded Debt to EBITDA Ratio is also referred to as "Debt to EBITDA ratio" by the Company and is not a defined term under IFRS.  See "Non-IFRS financial measures and key performance indicators" in D+H's Management Discussion and Analysis for the three and nine months ended September 30, 2016 for a more complete description of "Debt to EBITDA ratio".

D+H (TSX: DH) is a leading financial technology provider that the world's financial institutions rely on every day to help them grow and succeed. Our global payments, lending and financial solutions are trusted by nearly 8,000 banks, specialty lenders, community banks, credit unions, governments and corporations. Headquartered in Toronto, Canada, D+H has more than 5,500 employees worldwide who are passionate about partnering with clients to create forward-thinking solutions that fit their needs. With annual revenues in excess of $1.5 billion, D+H is recognized as one of the world's top FinTech companies on IDC Financial Insights FinTech Rankings and American Banker's FinTech Forward rankings. For more information, visit dh.com

Additional details regarding the amendments can be found in the latest amendments to the credit agreement and note purchase agreements, copies of which are available at www.sedar.com. The selected information included in this release is qualified in its entirety by, and should be read together with, these agreements. DH Corporation is listed on the Toronto Stock Exchange under the symbol DH. Further information can be found at dh.com and in the disclosure documents filed by DH Corporation with the securities regulatory authorities at sedar.com.

SOURCE DH Corporation