In the news release, Callidus Capital Finalizes Securitization Facility, issued 01-Dec-2016 by Callidus Capital Corporation, please note that an error occurred at the beginning of the second paragraph which should read " The C$167 million (US$125 million) facility..." not "The C$167 million (US$167 million) facility...". Corrected copy follows:
Callidus Capital Finalizes Securitization Facility
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Dec. 1, 2016 /CNW/ - Callidus Capital Corporation (TSX:CBL) ("Callidus" or the "Corporation") is pleased to announce that it has closed the previously announced securitization facility.
The C$167 million (US$125 million) facility has four investment grade debt tranches ranging from AAA (sf) to BBB (sf), which represents approximately 60% of the initial issue size. The securitization facility will augment Callidus' current financing facilities. Over time, as the securitization program expands, Callidus will review and optimize the size of its other facilities to achieve the most suitable capital structure to support the doubling of its loan portfolio over the next two to three years.
"We expect the securitization facility to represent an increasing proportion of Callidus' future capital structure and that it will be utilized as our primary senior growth-financing vehicle going forward. The facility will support a lower, sustainable cost of capital, allow us to optimize leverage, and therefore, increase the return generated for shareholders," said Newton Glassman, Executive Chairman and CEO of Callidus.
Rates under the new facility represent an approximate 2% reduction in Callidus' cost of funds, compared with the rates Callidus is paying under the current financing facilities.
The proceeds from the new securitization facility will be used to partially repay outstanding amounts under the existing facilities. This will create incremental liquidity for Callidus - allowing the Corporation to lever the current loan portfolio by approximately an incremental $27 million.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Callidus Capital Corporation
Established in 2003, Callidus Capital Corporation is a Canadian company that specializes in innovative and creative financing solutions for companies that are unable to obtain adequate financing from conventional lending institutions. Unlike conventional lending institutions who demand a long list of covenants and make credit decisions based on cash flow and projections, Callidus credit facilities have few, if any, covenants and are based on the value of a borrower's assets, its enterprise value and borrowing needs. Callidus employs a proprietary system of monitoring collateral and exercising control over the cash inflow and outflows of each borrower, enabling Callidus to very effectively manage any risk of loss. Further information is available on our website, www.calliduscapital.ca.
SOURCE Callidus Capital Corporation
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