Vancouver's Peer 1 Network Enterprises Inc. (TSX:PIX) has secured a US$40 million revolving credit facility with National Bank Financial Group.
It replaces existing credit provided by Fortress Credit Corp. on cheaper and more flexible terms.
About US$15 million of the credit was immediately drawn down: US$13 million was used to repay its remaining debt with Fortress Credit; the balance was added to Peer 1's cash position. The term loan will accrue annual interest of 5.36%.
The remaining US$25 million revolving credit facility will be available for the company to finance operations, capital expenditures or fund potential acquisitions that meet criteria specified in the credit agreement.
Peer 1's share price range during the past week: between $1.11 and $1.15; 52-week high: $1.69; 52-week low: $0.81.