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Vancouver-based Media Tech Company BBTV Announces Intention to Complete New $21.4 Million Senior Secured Term Loan (From MEP Capital Holdings)
Tuesday, February 7, 2023Company Profile | Follow Company
Vancouver, BC, February 7, 2023--(T-Net)--Vancouver-based media tech company BBTV Holdings Inc. (TSX: BBTV ), announced today that it has entered into a non-binding term sheet for a $21.4 million (US $16 million) senior secured term loan from MEP Capital Holdings III, L.P., an arm's length investment capital firm based in New York.
The Term Loan will bear interest at 16% per annum and mature on the 4th anniversary of the closing date of the Term Loan. Interest is payable on a quarterly basis, with the principal payable upon maturity.
Ten million (US $10 million) of the Term Loan is committed, with approximately US $6 million being conditional upon a performance target related to the Company's top Base Solution Channels and Content Management business being met for H1 2023.
The Company says it intends to use the proceeds of the Term Loan for working capital and to pay-out the Company's overdraft facility with a Canadian chartered bank.
The Term Loan will be secured by a perfected, sole first-priority security interest in all tangible and intangible assets of the Company and its Canadian and U.S. wholly-owned subsidiaries, now existing or acquired, subject to certain carve-outs or pari passu rights in favour of UFA Film und Fernseh GmbH which holds a convertible promissory note from the Company due May 26, 2026.
MEP and UFA are expected to enter into an intercreditor agreement providing, among other things, for the priorities of the two lenders with respect to the Loan Security. All of the Company's active direct and indirect wholly-owned subsidiaries will act as co-borrowers or guarantors of the Term Loan.
About BBTV Holdings
BBTV Holdings Inc. is a global media and technology company headquartered in Vancouver, Canada. The Company's mission is to help content creators become more successful.
With creators ranging from individuals to global media brands, the Company provides comprehensive, end-to-end Solutions to increase viewership and drive revenue powered by its innovative technology, while allowing creators to focus on their core competency - content creation.
In December 2021, the Company had the fourth most unique monthly viewers among digital platforms with more than 600 million globally, who consumed more than 35 billion minutes of video content [1].
[1] Calculations and classifications made by the Company based on data from Comscore's "Top 12 Countries = December 2021 comScore Video Metrix Media Trend - Multi-Platform - Top 100 Video Properties Report"; Top 12 countries represent ~50% of world's digital population.
Links to SEDAR filings, conference call recordings and press releases are available on the investor website at: https://investors.the Company.com/
Additional Details on the Financing
Forward-Looking Statements
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