Smart Employee Benefits clarifies credit facility, limited guarantee

Chicago, Sept. 6 – Smart Employee Benefits, Inc. provided additional information about its C$15 million credit facility from June 24, according to a press release.

The C$15 million existing credit agreement was extended with its international asset-focused lender at that time.

Also at the time of the extension, Co-operators Financial Services Ltd. provided an amended and restated limited guarantee in favor of the lender in the amount of C$10 million (a C$5 million increase) and Smart Employee issued a corresponding amended and restated promissory note in favor of Co-operators.

Should the lender call on the amended and restated limited guarantee, any amount paid by Co-operators to the lender would be deemed to be a repayment under the credit agreement, and then Smart Employee would owe that money under the promissory note to Co-operators.

The amended and restated promissory contemplated that Smart Employee would be able to repay interest in shares, subject to regulatory approval at the time of issuance.

The promissory note is considered a related party transaction.

Smart Employee has agreed to not issue shares in payment of interest without first obtaining minority shareholder approval.

Based in Mississauga, Ont., Smart Employee is a technology company that builds, customizes, implements, integrates, and manages data-processing solutions.

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