Brampton, Ontario – March 5, 2019 – DATA Communications Management Corp. (TSX: DCM) (“DCM” or the “Company”) announces it has entered into a second amendment to its amended and restated revolving credit facility (the “Credit Facility”) with a Canadian chartered bank (the “Bank”).
Significant terms of the amendments made to DCM’s Credit Facility include the following: extension of the maturity date by approximately three years to January 31, 2023, from its original maturity date of March 31, 2020; a reduction in the interest rate payable on advances under the Credit Facility by 15 basis points; the elimination of an early termination fee in the event the Credit Facility is terminated or repaid prior to maturity; and amendments related to the calculation of certain financial covenants as a result of the adoption of IFRS 16 (Leases) effective for reporting periods on or after January 1, 2019.
The amendments related to IFRS 16 include clarification that calculation of the Company’s fixed charge coverage ratio under the Credit Facility will be completed on substantially the same basis as prior to the adoption of IFRS 16, after giving effect to changes in the accounting treatment of leases related to right-of-use assets. As a result, definitions of certain terms related to IFRS 16 were added to the Credit Facility. The Company’s financial covenant ratio with the Bank remains unchanged.
“We are pleased by the confidence our senior Bank credit provider has placed with us,” said Gregory J. Cochrane, President & CEO of DCM. “Our maximum amount available under this facility remains at $35 million to support our working capital requirements. Not only have we received improved terms in an environment of rising prime rates, but the extended term matches nicely with the final scheduled payments under our fully amortizing Integrated Asset Management fixed term credit facilities which will be fully repaid in early 2023 and our Crown Capital bullet facility which matures in May 2023.”
ABOUT DATA COMMUNICATIONS MANAGEMENT CORP.
DCM is a communication solutions partner that adds value for major companies across North America by creating more meaningful connections with their customers. DCM pairs customer insights and thought leadership with cutting edge products, modular enabling technology and services to power its clients’ go to market strategies. DCM helps its clients manage how their brands come to life, determine which channels are right for them, manage multimedia campaigns, deploy location specific and 1:1 marketing, execute custom loyalty programs, and fulfill their commercial printing needs all in one place.
DCM’s extensive experience has positioned it as an expert at providing communication solutions across many verticals, including the financial, retail, healthcare, consumer health, energy, and not for profit sectors. As a result of its locations throughout Canada and in the United States (Chicago, Illinois), it is able to meet its clients’ varying needs with scale, speed, and efficiency – no matter how large or complex the ask. DCM is able to deliver advanced data security, regulatory compliance, and bilingual communications, both in print and/or digital formats.
Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
Certain statements in this press release constitute “forward looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. When used in this press release, words such as “may”, “would”, “could”, “will”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan”, and other similar expressions are intended to identify forward looking statements. These statements reflect DCM’s current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release. These forward looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees that future performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward looking statements, including the changes in the Company’s senior management and other factors discussed elsewhere in this press release and under the headings “Liquidity and capital resources” and “Risks and Uncertainties” in DCM’s management’s discussion and analysis and other publicly available disclosure documents, as filed by DCM on SEDAR (www.sedar.com).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward looking statements.
For further information, contact:
Mr. Gregory J. Cochrane
Chief Executive Officer
DATA Communications Management Corp.
Tel: (905) 791-3151
Mr. James E. Lorimer
Chief Financial Officer
DATA Communications Management Corp.
Tel: (905) 791-3151