Mr. Andrew Bentley reports

PIVOT TECHNOLOGY SOLUTIONS REFINANCES EXISTING CREDIT FACILITIES

Pivot Technology Solutions Inc. has entered into a $200-million (all figures in U.S. dollars) senior, secured, asset-based revolving credit facility agreement with a group of lenders represented by JP Morgan Chase Bank N.A. (JPMC), as agent.

The new facility replaces the company's current facility with PNC Bank National Association as agent. The proceeds from the facility will serve to finance general working capital of Pivot and its operating companies, and repay the outstanding balances of both its existing term loan and current revolving credit loan facilities with PNC. No penalties are due on redeeming the revolving credit loan facility, while a 1-per-cent fee is payable on the remaining principal ($5.75-million) of the term loan. The new credit facility allows the company to borrow up to $200-million, with the exact amount available based on eligible accounts receivable and inventory at any time. The facility has been underwritten by a syndicate of lenders led by JPMC and initially includes Bank of America, N.A.

"In replacing the existing facility, we achieve a number of benefits, such as lower interest expense, greater liquidity and additional flexibility in the use of funds drawn down," stated Kerri Brass, chief financial officer of Pivot. "For instance, the new facility allows us to draw down funds for financing international sales, an area we have targeted for growth. The new facility also makes provision to scale up at our discretion in support of overall growth in the business."

The loans under the new credit facility bear interest at a rate based on LIBOR or Canadian prime rate plus the applicable margin, which shall vary between 150 and 175 basis points or zero and 25 basis points, respectively, depending on excess availability from time to time. The new credit facility will mature on Sept. 21, 2020.

The new credit facility may be increased by a maximum total amount of $75-million by obtaining additional commitments from one or more lenders, without additional approval from other lenders, during the term of the agreement provided there is no default or event of default at such time.

We seek Safe Harbor.