NextPoint Financial Secures $74.4M Term Loan From Existing Lender Group Led by Basepoint Capital
HURST, Texas, Nov. 4, 2022 /CNW/ - NextPoint Financial Inc. (TSX: NPF.U) (OTC: NACQF) today announced the completion of an amendment to NextPoint's existing revolving credit facility with affiliates of Basepoint Capital, which provides for a new $74.4 million term loan to LT Holdco, LLC, a NextPoint subsidiary. Proceeds from the term loan will be drawn in two advances and will be used to pay down borrowings under an existing revolving credit facility and to provide additional working capital for NextPoint and its Liberty Tax business.
NextPoint CEO, Brent Turner, commented, "As we approach tax season, this support from our existing lenders, led by Basepoint Capital, provides a solid working capital position to fund NextPoint and our Liberty Tax subsidiary operations. The amended agreement also maintains good standing with respect to debt covenants going forward."
Debt funding for NextPoint's Community Tax subsidiary continues to be provided by a $45 million first lien term loan and $25 million principal amount of second lien term loans with existing lenders from the onset of that acquisition.
NextPoint provides financial services to empower hardworking and underserved consumers and small businesses. NextPoint solutions include Liberty Tax, a leading provider of tax preparation services, and Community Tax, acquired in December 2021, an effective tax debt resolution advocate for customers.
Brown Rudnick LLP acted as U.S. legal counsel to NextPoint, and DLA Piper LLP acted as Canadian counsel to NextPoint.
This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation, respectively. All statements, other than statements of historical fact, included herein are forward-looking information, including, among others, statements regard the strength of the capital structure of NextPoint, the benefits of the amended credit facility described herein. Often, but not always, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of NextPoint or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including, but not limited to the risks disclosed in the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2021 and the Company's final prospectus dated June 3, 2021, in each case filed with under the Company's profile on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Although the Company believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information or forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
SOURCE NextPoint Financial Inc.
NextPoint Investor Relations, Chris Eddy or David Collins, Catalyst IR, 212 924 9800, [email protected]
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