TORONTO, Sept. 26,
2023 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX:
TC), a global company dedicated to making the internet
better, is pleased to announce that on September 22, 2023, the company and its wholly
owned subsidiaries entered into a new Credit Agreement with Bank of
Montreal ("BMO") as administrative
agent which provides for a revolving Credit Facility of up to
$240 million, with an accordion for
$60 million. The new Credit Agreement
replaces the existing Third Amended and Restated Credit Agreement
with Royal Bank of Canada ("RBC"),
with the new Credit Facility set to expire on September 22, 2026, marking the third anniversary
of the effective date of the agreement.
The new Credit Agreement involves several key terms and
provisions with slightly better borrowing costs and leverage
covenants that provide further stability for the next three years
to Tucows' financial position and to support its growth
initiatives.
Tucows is excited about this strategic partnership with Bank of
Montreal and the other members of
the syndicate, including TD Bank, Bank of Nova Scotia, CIBC, National Bank of
Canada, Business Development Bank
of Canada and HSBC Bank
Canada.
The Credit Agreement also contains customary representations and
warranties, affirmative and negative covenants, and events of
default. Tucows is committed to maintaining specific financial
covenants, including leverage and interest coverage ratios.
In connection with entering into the Credit Agreement, Tucows
has paid off the principal balance, including accrued interest, of
the revolving loans outstanding under the Third Amended and
Restated Credit Agreement with RBC. Tucows thanks RBC for their
support during the past four years.
For more information, please refer to the Credit Agreement filed
in Tucows' 8K on September 25, 2023.
About Tucows
Tucows helps connect more people to the benefit of internet
access through communications service technology, domain services,
and fiber-optic internet infrastructure. Ting (https://ting.com)
delivers fixed fiber Internet access with outstanding customer
support. Wavelo (https://wavelo.com) is a telecommunications
software suite for service providers that simplifies the management
of mobile and internet network access; provisioning, billing and
subscription; developer tools; and more. Tucows Domains
(https://tucowsdomains.com) manages approximately 24 million domain
names and millions of value-added services through a global
reseller network of over 35,000 web hosts and ISPs. Hover
(https://hover.com) makes it easy for individuals and small
businesses to manage their domain names and email addresses. More
information can be found on Tucows' corporate website
(https://tucows.com).
Tucows, Ting, Wavelo, and Hover are registered trademarks of
Tucows Inc. or its subsidiaries.
This release includes forward-looking statements as that term
is defined in the U.S. Private Securities Litigation Reform Act of
1995, including statements regarding our expectations regarding our
future financial results and, including, without limitation, our
expectations regarding our ability to realize synergies from the
Enom acquisition and our expectation for growth of Ting Internet.
These statements are based on management's current expectations and
are subject to a number of uncertainties and risks that could cause
actual results to differ materially from those described in the
forward-looking statements. Information about other potential
factors that could affect Tucows' business, results of operations
and financial condition is included in the Risk Factors sections of
Tucows' filings with the Securities and Exchange Commission. All
forward-looking statements should be evaluated with the
understanding of their inherent uncertainty. All forward-looking
statements are based on information available to Tucows as of the
date they are made. Tucows assumes no obligation to update any
forward-looking statements, except as may be required by
law.
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SOURCE Tucows Inc.