Accord Financial cuts borrowings on credit facility to C$300 million

Chicago, March 18 – Accord Financial Corp. amended its primary credit facility with its banking syndicate after the company uncovered significant irregularities in collateral reporting by a borrower related to a C$14.4 million loan, which led the company to record a specific provision for credit losses relating to its primary credit facility, according to a press release.

A series of facility agreement waivers provided temporary relief from a technical default caused by a reduction in permitted borrowings as a result of the loan.

The company has now modified certain elements of the facility agreement to provide a longer-term resolution through the facility’s maturity in July 2025.

The facility limit has been reduced to C$300 million from C$375 million. It will be reduced to C$260 million by January 2025.

The decrease in the facility limit is more appropriate to the company’s current tangible equity and current level of borrowings.

In addition, a minimum availability covenant along with certain financial and operating covenants will result in more conservative leverage overall.

Accord Financial is a Toronto-based financial services company.

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