MONTREAL, Oct. 1, 2024
/PRNewswire/ - The Lion Electric Company (NYSE: LEV) (TSX:
LEV) ("Lion" or the "Company"), a leading manufacturer of
all-electric medium and heavy-duty urban vehicles, announced today
that it has entered into additional amendments to certain of its
senior credit instruments, namely (i) its senior revolving
credit agreement entered into with a syndicate of lenders
represented by National Bank of Canada, as administrative agent and collateral
agent, and including Bank of Montreal and Federation des Caisses Desjardins
du Québec, and (ii) its loan agreement entered into with
Finalta Capital and Caisse de dépôt et placement du Quebec.
The revolving credit agreement amendments provide for, among
other things, the extension of the period applicable to the
previously announced suspension of the financial covenants under
the revolving credit agreement, namely the tangible net worth test
and the springing fixed charge coverage ratio, from
September 30, 2024, to November 15, 2024 (the "covenant
relief period"). In furtherance of such amendments, the Company has
agreed that any excess cash would be used for the repayment of the
revolving credit agreement. The Company continues to be required to
maintain a minimum amount of available liquidity (calculated based
on the maximum amount that can be drawn under the revolving credit
facility and cash on hand) of C$15,000,000, subject to limited exceptions.
Further, the Company remains subject to enhanced reporting
obligations and limitations on the use of any advances made under
the revolving credit facility until such time that the amount
available to be drawn under the revolving facility equals or
exceeds 50% of the total borrowing capacity under the revolving
facility for 30 consecutive days. All other material terms and
conditions of the revolving credit agreement and prior amendments
thereto, including the August 11,
2025 maturity date and the general affirmative covenants,
restrictions, negative covenants and events of defaults thereunder,
remain substantially unchanged. For additional details on the
revolving credit agreement and amendments thereof, please refer to
the copies thereof which will be available on the Company's
profiles on SEDAR+ at www.sedarplus.ca and EDGAR at
www.sec.gov.
The Company also amended the loan agreement (the "Finalta CDPQ
Loan Agreement") entered into with Finalta Capital Fund, L.P., as
lender and administrative agent, and Caisse de dépôt et placement
du Quebec (through one of its
subsidiaries), as lender, to extend the November 6, 2024
maturity date until November 30,
2024. The amendment also provides that the minimum available
liquidity requirement under the Finalta CDPQ Loan Agreement will
remain aligned during the covenant relief period with the one
applicable during such period under the revolving credit agreement.
All other terms and conditions of the amended loan agreement remain
substantially unchanged.
The Company will continue to actively evaluate different
opportunities that may enable it to improve its liquidity and
strengthen its financial position. Such opportunities may include
certain refinancing initiatives related to its debt instruments,
the sale of certain of its assets and/or any other opportunities or
alternatives.
ABOUT LION ELECTRIC
Lion Electric is an innovative manufacturer
of zero-emission vehicles. The company creates, designs
and manufactures all-electric class 5 to class 8 commercial
urban trucks and all-electric school buses. Lion is a North
American leader in electric transportation and designs, builds
and assembles many of its vehicles' components, including chassis,
battery packs, truck cabins and bus bodies.
Always actively seeking new and reliable technologies, Lion
vehicles have unique features that are specifically adapted to its
users and their everyday needs. Lion believes that transitioning to
all-electric vehicles will lead to major improvements in our
society, environment and overall quality of life. Lion shares are
traded on the New York Stock Exchange and the Toronto Stock
Exchange under the symbol LEV.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities laws and within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
"forward-looking statements"), including statements regarding the
amendments entered into by the Company, its evaluation of
other opportunities, statements about Lion's beliefs and
expectations and other statements that are not statements of
historical facts. Forward-looking statements may be identified by
the use of words such as "believe," "may," "will," "continue,"
"anticipate," "intend," "expect," "should," "would," "could,"
"plan," "project," "potential," "seem," "seek," "future," "target"
or other similar expressions and any other statements that predict
or indicate future events or trends or that are not statements of
historical matters, although not all forward-looking statements may
contain such identifying words. The forward-looking statements
contained in this press release are based on a number of estimates
and assumptions that Lion believes are reasonable when made. Such
estimates and assumptions are made by Lion in light of the
experience of management and their perception of historical trends,
current conditions and expected future developments, as well as
other factors believed to be appropriate and reasonable in the
circumstances. However, there can be no assurance that such
estimates and assumptions will prove to be correct. By their
nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may
or may not occur in the future. For additional information on
estimates, assumptions, risks and uncertainties underlying certain
of the forward-looking statements made in this press release,
please consult section 23.0 entitled "Risk Factors" of the
Company's annual management's discussion and analysis of financial
condition and results of operations (MD&A) for the fiscal year
2023 and in other documents filed with the applicable Canadian
regulatory securities authorities and the Securities and Exchange
Commission, including the Company's interim MD&As. Many of
these risks are beyond Lion's management's ability to control or
predict. All forward-looking statements attributable to Lion or
persons acting on its behalf are expressly qualified in their
entirety by the cautionary statements contained and risk factors
identified in the Company's annual MD&A for the fiscal year
2023 and in other documents filed with the applicable Canadian
regulatory securities authorities and the Securities and Exchange
Commission. Because of these risks, uncertainties and assumptions,
readers should not place undue reliance on these forward-looking
statements. Furthermore, forward-looking statements speak only as
of the date they are made. Except as required under applicable
securities laws, Lion undertakes no obligation, and expressly
disclaims any duty, to update, revise or review any forward-looking
information, whether as a result of new information, future events
or otherwise.
With respect to the financing or other opportunities or
alternatives for the Company, there can be no assurance that the
Company will be successful in pursuing and implementing any such
opportunities or alternatives, nor any assurance as to the outcome
or timing of any such opportunities or alternatives, including
whether the Company will be able to remain in compliance with the
terms and conditions of its debt instruments and to have access to
sufficient cash to meet its operational needs.
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SOURCE The Lion Electric Co.
