Toronto, ON – June 14, 2017 – TeraGo Inc. (“TeraGo” or the “Company”) (TSX: TGO, www.terago.ca), today announced that an amendment was entered into between TeraGo Networks Inc., the Company as guarantor, each of the Lenders (as defined below) and National Bank of Canada (as administrative agent), to an existing credit agreement dated June 6, 2014, as previously amended on March 6, 2015 (collectively, the “Credit Agreement”).
The parties to the Credit Agreement agreed, among other things, to extend the maturity date from June 30, 2018 to June 14, 2021. The total credit facilities will decrease from an aggregate amount of $85.0 million to $75.0 million, to reflect principal repayments previously made which have reduced the non-revolving term facility from $50.0 million to $40.0 million. The other facilities consist of a $10.0 million revolving operating credit facility and a $25.0 million non-revolving acquisitions facility, the latter of which remains undrawn and available. National Bank of Canada, Royal Bank of Canada and The Toronto-Dominion Bank (collectively, the “Lenders”) remain as syndicate lenders under the Credit Agreement. The covenants and other terms and conditions under the Credit Agreement remain substantially unchanged.
“We are pleased to maintain our borrowing relationship with the Lenders. The extension of our Credit Agreement allows us to continue to focus on growing the business, and knowing that the financial support and flexibility is there to facilitate the execution of our strategic growth plan”, says Tony Ciciretto, President and CEO of TeraGo.
TeraGo provides businesses across Canada and internationally with cloud, colocation and connectivity services. TeraGo manages over 3,000 cloud workloads, nine data centres in the Greater Toronto Area, the Greater Vancouver Area, Ottawa, Kelowna, Winnipeg, St. Louis and Newport, United Kingdom, and owns and manages its own IP network. The Company serves approximately 4,000 business customers in 46 major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg. TeraGo Networks is a Competitive Local Exchange Carrier (CLEC) and was recognized by IDC as a Major Player in MarketScape Cloud Vendor Assessment. TeraGo Networks was also selected as one of Canada’s Top Small and Medium Employers for 2017.