Private Debt Partners has provided a C$7 million term facility to KDA Group, a Thetford Mines, Quebec-based provider of solutions and services to the pharmaceutical market. The deal’s proceeds will be used to refinance KDA’s Schedule A bank debt and facilitate the launch of its new technology healthcare platform.
Private Debt Partners funds $7MM to KDA Group Inc.
TORONTO, Aug. 9, 2021 /CNW/ – Private Debt Partners (“PDP”) is pleased to announce it has funded a $7.0 million term facility to KDA Group Inc. (TSXV: KDA) (“KDA”). The proceeds will refinance KDA’s Schedule A bank debt and will facilitate the launch of KDA’s new technology healthcare platform. Included in this loan PDP has provided approval for an incremental $1.0 million to support KDA’s future growth opportunities.
“KDA’s management is proud to have closed this Debt Financing with Private Debt Partners. This allows the Corporation to exit National Bank of Canada’s special loans department and improves its current and future financial position. Furthermore, the financing for the development of our technological projects is secured and we will now be able to concentrate on the commercialization, marketing and success of each of them. I would like to thank Private Debt Partners for their collaboration and assistance in this Debt Financing,” said Sylvain Duvernay, Chief Executive Officer of KDA. PDP Managing Partner Jean-Christophe Greck commented, “We are excited to have provided a creative debt solution for KDA Group which we expect to facilitate the growth of their business.” KDA and PDP look forward to this long term partnership.
The Debt Financing consists in two (2) separate loans of $3.0 million each to KDA’s two (2) wholly owned subsidiaries and $1.0 million incremental has been pre-approved and can be called by KDA with PDP’s approval subject to a 2% per year standby fee. The interest rate of the Debt Financing is 9.95% per year.
The Debt Financing is secured through general security agreement and hypothecs with a parental guarantee from KDA. The parties have agreed to financial covenants, non-financial covenants and conditions precedent between them.
The use of proceeds is to refinance existing term debt and operating facility held by National Bank of Canada, to fund Groupe Technologique KDA Inc. and for general working capital purposes.
This transaction marks PDP’s first funding from its Senior Opportunities Fund (“SOF”). PDP is actively working to deploy senior term financing solutions to the Canadian mid-market.
ABOUT PRIVATE DEBT PARTNERS
Private Debt Partners is a private debt firm solely focused on providing debt solutions to the Canadian mid-market. PDP originates, underwrites, and structures senior secured term loans to successful, well-managed companies throughout Canada. PDP was co-founded by Jeffrey Deacon, Greg Dimmer and Jean-Christophe Greck who combined bring over 35 years of experience in fundraising, origination, portfolio management and underwriting. Lead investors include Stephen Lister and Thomas MacMillan. Additional information on PDP is available at www.privatedebt.com
ABOUT KDA GROUP
KDA Group is a leading technological innovations and specialized solutions provider in the pharmaceutical market. Today, it is a respected name for quality and expertise among the different stakeholders in the pharmaceutical and medical sector. Its management team is guided by a vision of continuing to lead the way in Quebec while extending operations across Canada and internationally. Additional information on the Corporation is available at www.kdagroup.ca and on SEDAR at www.sedar.com.