IOU Financial enters into $50 million credit facility with Midcap Financial
- Facility increases availability of capital to support growth, and lowers funding cost of capital
- Marks completion of important strategic objective for IOU management
NOT FOR DISTRIBUTION IN THE UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
MONTRÉAL, April 22, 2016 – IOU Financial Inc. (TSX Venture Exchange: IOU) (“IOU Financial” or the “Company”), a leading online lender to small businesses, is pleased to announce that it has entered into a $50 million credit facility with MidCap Financial (“MidCap”). The facility will have an initial commitment amount of $25 million and will be expandable to $50 million at IOU’s request and the lender’s acceptance.
MidCap is a middle market-focused, specialty finance firm that provides senior debt solutions to companies across all industries.
“The credit facility will not only increase the availability of capital to support our growth, but also lowers our funding cost of that capital. I am very pleased to have concluded this agreement with MidCap, achieving an important strategic objective for our management team, and further positioning the Company for continued growth,” said Phil Marleau, CEO of IOU Financial.
CCFL Capital, an Exempt Market Dealer, acted as the Company’s financial advisor in connection with the credit facility.