On August 9, 2018, Covalon Technologies Ltd. entered into a new acquisition and operating banking credit facility with HSBC Bank Canada that provides Covalon with up to C$17 million of credit. The HSBC banking agreement includes a C$9 million acquisition demand line, a C$5 million revolving operating facility, and a US$2 million bank guarantee facility. HSBC will also provide Covalon a foreign currency hedging facility, and corporate credit card facility in support of Covalon’s ongoing operations. The term of the acquisition demand line is repayable over five years.
Cassels acted for HSBC with a deal team that included Chuck Rich and Carla Potter (Financial Services).