Canadian private equity firm Mosaic Capital Corp has amended an agreement with the corporate financial services branch of ATB Financial to increase its credit facility from $35 million to $50 million. Mosaic CEO Mark Gardhouse said the additional credit availability will allow the firm to make more mid-market acquisitions. The Calgary-based investor earlier this year acquired a majority stake in Cedar Infrastructure Products Inc, a Vaughan, Ontario distributor of specialty materials used in construction.
Mosaic Capital Corporation signs agreement with ATB Corporate Financial Services to increase its acquisition facility
CALGARY, July 4, 2017 /CNW/ – Mosaic Capital Corporation (“Mosaic”) (TSX-V Symbols: M and M.DB) is pleased to announce that it has amended its credit agreement with ATB Corporate Financial Services providing for an increase in its credit facility from $35 million to $50 million, with the additional availability being earmarked to support Mosaic’s next acquisition. The credit facility remains a revolving committed facility which is available for the purposes of acquisitions, day to day operating requirements and capital expenditures. The credit facility bears interest at grid rates ranging from bank prime plus 0.50% – 1.50% and is secured by, among other things, a general security agreement and the assignment of securities that Mosaic holds in certain subsidiaries.
“This increased credit line availability enhances Mosaic’s financial flexibility to make additional acquisitions,” commented Mark Gardhouse, CEO. Mr. Gardhouse continued, “Mosaic’s mid-market acquisition pipeline remains robust and we continue to see strong value creation opportunities for our shareholders as we pursue our growth plans.”
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of established businesses which span a diverse range of industries and geographies. Mosaic’s strategy is to create long-term value for its shareholders through accretive acquisitions, long-term portfolio ownership, sustained cash flows and organic portfolio growth. Mosaic achieves its objectives by maintaining financial discipline, acquiring businesses at attractive valuations, performing extensive acquisition due diligence, utilizing optimal transaction structuring and working closely with subsidiary businesses after acquisition.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: Cam Deller, Vice President, Corporate Development, Mosaic Capital Corporation, 400, 2424 – 4th Street SW, Calgary, AB, T2S 2T4, T: (403) 930-6576, E: firstname.lastname@example.org
Photo courtesy of Reuters/Christinne Muschi