08:19:44 EDT Thu 30 May 2024
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Nuran Wireless Inc (2)
Symbol NUR
Shares Issued 50,778,819
Close 2024-05-14 C$ 0.12
Market Cap C$ 6,093,458
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Nuran signs term sheet for $15M (U.S.) credit facility

2024-05-15 12:59 ET - News Release

Mr. Francis Letourneau reports


Nuran Wireless Africa Holding, a wholly owned subsidiary of Nuran Wireless Inc., has signed a non-binding term sheet and a mandate letter with a global asset management company (the lender and the lead arranger) for a long-term senior secured credit facility of which $15-million (U.S.) is to be provided by the lender. The loan facility will include a mechanism for the lead arranger to increase the facility to up to $70-million (U.S.) in financing, including a syndication of other lenders. This financing will facilitate the procurement and installation of network infrastructure sites across several African countries.

The long-term loan facility comprises much improved terms than previously received from potential lenders and represents a crucial step forward in Nuran's strategic plans to bolster telecommunications infrastructure in Africa. This will allow Nuran to swiftly implement network infrastructure rollouts, particularly in Cameroon, the Democratic Republic of the Congo, Ivory Coast and Madagascar and future potential countries. Following the announcement of March 11, 2024, this signing follows approval by the lender's internal committee and will initiate formal due diligence and finalization of definitive documentation of the loan facility. Nuran agreed to proceed with the lead arranger affiliated with the lender in a formal mandate that will streamline the introduction and alignment with other lenders. The mandate will also leverage the work done on the previously announced bridge loan from Cygnum Capital and the Facility for Energy Inclusion (FEI).

The loan facility is for a term of seven years including a two-year grace period on repayment of principle and disbursements may be requested up to 24 months following execution of definitive agreements for the loan facility. It offers the flexibility to draw down per country as the condition's precedent are met and to align with the build plan. The loan facility will be subject to standard security for this type of financing and are subject to the lender's due diligence and customary conditions, events of default, and covenants to be outlined in the definitive agreements respecting the financing. Interest under the loan facility is due on all disbursed sums and is to be paid quarterly in arrears on predetermined payments dates. The interest rate will be a fixed rate as specified by the Borrower for each tranche at up to 10 per cent.

Francis Letourneau, chief executive officer of Nuran Wireless, stated: "This financing proposal represents a significant endorsement of our vision to empower lives in Africa. We have demonstrated that our current installs in Cameroon are already yielding significant returns and we fully expect this trend to continue as we roll out more sites. We are grateful for the support of this global asset management company and our other lending partners as we continue to execute on our mission to deliver reliable and affordable connectivity solutions to communities in need."

There is no assurance that the definitive documents for the loan facilities will be entered into with the lenders as planned or at all. The proposed loan facility is currently non-binding and subject to, among other things, the negotiation and execution of definitive loan and security agreements, the approval of the Canadian Securities Exchange, and any other required regulatory and third party approvals, as well as other customary terms and conditions. There can be no assurances that the loan facility will be completed on the terms set out in the term sheet, or at all, or if completed, that the conditions to draw down would be satisfied.

The company looks forward to updating stakeholders on further progress as it advances its initiatives to enhance telecommunications infrastructure and foster socio-economic development in Africa.

About Nuran Wireless Inc.

Nuran Wireless is a specialist telecommunications company that meets the growing demand for wireless network coverage in remote and rural regions around the globe. With its affordable and innovative scalable solutions of 2G, 3G and 4G technologies, Nuran Wireless offers a new possibility for more than one billion people to communicate effectively over long distances efficiently and affordably.

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