NEXTPOINT FINANCIAL ANNOUNCES FORBEARANCE AGREEMENTS WITH LENDERS
HURST, Texas, July 4, 2023 /CNW/ - NextPoint Financial Inc. ("NextPoint" or the "Company") (TSX: NPF.U) (TSX: NPF.WT.U) (OTC PINK: NACQF) announces that (i) NPI Holdco LLC (the "NP Borrower") and LT Holdco, LLC (the "Liberty Borrower"), which are material subsidiaries of the Company, entered into a forbearance agreement (the "NP-Liberty Forbearance Agreement") with their respective principal secured lenders pursuant to which the lenders have agreed, subject to the terms and conditions of the NP-Liberty Forbearance Agreement, to temporarily refrain from enforcing their default-related rights and remedies under the applicable credit agreement (collectively, the "NP-Liberty Credit Facility"), and (ii) CTAX Acquisition LLC (the "CTAX Borrower"), a material subsidiary of the Company, entered into a forbearance agreement (the "CTAX Forbearance Agreement", and together with the NP-Liberty Forbearance Agreement, collectively, the "Forbearance Agreements" and each a "Forbearance Agreement") with its principal secured lenders pursuant to which the lenders have agreed, subject to certain terms and conditions, to temporarily refrain from enforcing their default-related rights and remedies under each applicable credit agreement (collectively, the "CTAX Credit Facilities", and together with the NP-Liberty Credit Facility, the "Credit Facilities").
(i) Pursuant to each CTAX Credit Facility, the CTAX Borrower is required to make interest payments on July 1, 2023 or July 15, 2023, the failure of which will constitute an Event of Default (as defined in the CTAX Credit Facility), and (ii) pursuant to the NP-Liberty Credit Facility, each of the NP Borrower and the Liberty Borrower is required to make interest payments on July 3, 2023, the failure of which will constitute an Event of Default (as defined in the NP-Credit Credit Facility). Under the terms of each Forbearance Agreement, the lenders have agreed to forbear from exercising their default-related rights and remedies in respect of or arising out of such Events of Default (as defined in each Credit Facility), as applicable, until the earlier of (i) July 31, 2023, and (ii) the occurrence of any Default or Event of Default (as defined in each Credit Facility).
NextPoint is an all-inclusive marketplace for financial services empowering hardworking and underserved consumers and small businesses. NextPoint's primary business units are Liberty Tax, a leading provider of tax preparation services, and Community Tax, an effective advocate for tax debt resolution on behalf of customers.
This news release contains statements that include "forward-looking information" (as defined under applicable securities laws) ("forward-looking statements"). These forward-looking statements relate to future events or future performance including with respect to whether the lenders will continue to forbear from exercising their rights and remedies on expiry of the Forbearance Agreements and what the terms or timing of such a transaction or such continued forbearance might be. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and many factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating forward-looking statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited to, there being no events of default or breaches of the Credit Facilities, and the risks and uncertainties discussed in the section entitled "Risk Factors" in the Company's annual information form dated January 15, 2023. Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that the Company considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. Except as may be expressly required by applicable law, the Company does not undertake any obligation to update publicly or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE NextPoint Financial Inc.
NextPoint Investor Relations, [email protected], 757-493-8855
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