Premier Health of America Inc. is announcing a $50 million secured credit package (Secured Financing) aimed at closing the acquisition of Solution Staffing Inc., which was announced on July 4, 2023, including a refinancing of its current revolving facility and new term loans to finance the Transaction. The new structure is composed of five facilities, all of which are to be disbursed at closing of the Transaction pending TSX Venture Exchange acceptance under Policy 5.3 Expedited Acquisition Procedure as follows: CAD 10 million, 2-year revolving credit facility; CAD 25 million, 2-year senior term loan; CAD 5 million, 5-year senior term loan; CAD 5 million, 5-year subordinated debt; and CAD 5 million, 3.5-year subordinated debt. The first two loans bear interest at variable rates plus a margin based on the level of certain financial ratios calculated at the end of each financial quarter.

The other three loans have fixed rates averaging 14.3%. The Secured Financing is led by the Royal Bank of Canada and BDC Capital Inc., sole affiliate of the Business Development Bank of Canada and is subject to certain conditions precedents, mainly the conclusion of the Transaction and other customary conditions. Collateral security for the Secured Financing will be provided by PHA and its subsidiaries.