VANCOUVER, Dec. 11, 2015 /PRNewswire/ - UrtheCast Corp. (TSX:UR) ("UrtheCast" or the "Company") is pleased to announce its wholly-owned Spanish subsidiary, UrtheCast Imaging, S.L.U. ("UrtheCast Spain") has obtained a senior secured term loan of €25 million, representing approximately CAD$37.5 million, (the "Loan") from Banco de Sabadell, S.A. ("Sabadell"). The Loan has a five year term and will accrue interest at the EURIBOR 6 month rate (but no less than 0%) + 2.6% per annum.
Of the Loan, €20 million will be used to reduce an inter-company loan made by UrtheCast to UrtheCast Spain in connection with the acquisition of Deimos Imaging from Elecnor S.A. in July 2015 (the "Acquisition"). The remaining proceeds of €5 million will be held on deposit with Sabadell as a new guarantee to replace an existing bank guarantee to Elecnor S.A. provided in connection with the Acquisition. By replacing the prior guarantee, €5 million of restricted cash has been released, returning these funds to the Company for general working capital purposes.
UrtheCast's Chief Executive Officer, Mr. Wade Larson, commented: "We are very pleased to have closed this new term loan. We believe this new capital is a strong endorsement of the Company and its financial outlook. The refinancing provides the Company with substantial financial resources in support of the Company's operations and growth initiatives."
The Loan is secured by certain assets of UrtheCast's wholly-owned foreign subsidiaries. Repayment of €20 million of the Loan will be made in five equal payments on each anniversary date of the closing of the Loan. The remaining €5 million will be payable at the end of the term using the funds held for the issuance of the new bank guarantee, which will expire prior to the maturity of the Loan. Pre-payments will be permitted at UrtheCast Spain's option, subject to a 1% pre-payment fee under certain circumstances.
The Loan Agreement and ancillary agreements in respect of the Loan contain representations and warranties, affirmative and negative covenants (including requirements for UrtheCast Imaging to meet certain financial ratios on an ongoing basis) and events of default that are customary for lending facilities of this nature.
About UrtheCast Corp.
UrtheCast Corp. is a Vancouver-based technology company that has developed the world's first Ultra HD video feed of Earth, streamed from space in full color. Working with prominent aerospace partners from across the globe, UrtheCast has built, launched, installed, and is operating its Ultra HD video camera, Iris, on the ISS alongside its Medium Resolution Camera ("MRC"). Both Iris and the MRC have reached Initial Operation Capability ("IOC"), in 2015 and 2014 respectively. UrtheCast also owns and operates the Deimos-1 and Deimos-2 satellites through its Spanish subsidiary, operating as Deimos Imaging. Video and still image data captured by the cameras are downlinked to ground stations across the planet and displayed on the UrtheCast web platform, or distributed directly to partners and customers. UrtheCast's cameras and satellites generate information of Earth that allow for monitoring of the environment, humanitarian relief, social events, crop forecasting, and data analytics, etc. Common shares of UrtheCast trade on the Toronto Stock Exchange as ticker 'UR'.
For more information visit UrtheCast's website at www.urthecast.com.
This release contains certain information about UrtheCast which constitutes "forward-looking information" within the meaning of Canadian securities laws. Forward-looking information involves statements that an action or event "will" occur (or similar language) and includes statements about plans to repay the Loan, comply with certain covenants and warranties in respect of the Loan, operate cameras on the ISS, display data on the web platform, proposed imagery products and expected partners, customers and uses for such products. These statements are subject to various risks, many of which are beyond the ability of UrtheCast to control or predict, and which may cause UrtheCast's actual results to be materially different, including, but not limited to, the cameras or Deimos satellites failing to operate as expected, as well as those factors discussed in the Company's prospectus supplement dated June 24, 2015 to its short form base shelf prospectus and amended and restated short form base shelf prospectus dated May 15, 2015, as each such shelf was amended on June 19, 2015 (together, the "Prospectus") which are available under UrtheCast's SEDAR profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the Prospectus, and as disclosed from time to time on UrtheCast's SEDAR profile. UrtheCast undertakes no obligation to update forward-looking statements except as required by Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.
SOURCE UrtheCast Corp.