Flow Capital Secures $15 Million Credit Facility for Growth
Flow Capital Announces Major Credit Facility
Flow Capital Corp. (TSXV: FW), a leading provider of growth venture debt, has announced a significant step forward by entering into a loan agreement with TBK Bank, SSB. This arrangement provides a revolving committed credit facility amounting to up to US$15 million, which is expected to bolster Flow Capital's ability to finance investments and manage its operational needs.
Purpose of the Credit Facility
The primary intention behind the newly secured credit facility is to accelerate the company’s investments and support general corporate activities. Alex Baluta, CEO of Flow Capital, expressed enthusiasm about the collaboration with Triumph, stating, "We are thrilled that Triumph has the confidence in our track record, processes, team, and overall strategy to partner with us." This partnership symbolizes a pivotal milestone for Flow Capital in cementing its position as a prominent player in the venture debt sector.
Positive Returns and Strategic Planning
In a recent announcement, it was noted that the 6-year portfolio-level internal rate of return (IRR) from Flow Capital's senior secured loan portfolio is over 26%. Baluta elucidated that this credit line will serve as a small but essential component of their capital structure, facilitating their steady deployment pace. The focus remains on raising funds through redeemable floating rate debentures, which remain the primary source of funding.
Value Creation for Stakeholders
Since its inception, Flow Capital has successfully targeted high-growth companies, standing out in providing revenue-generating secured loans. The firm’s approach has yielded considerable value for shareholders and delivered attractive returns for debenture holders, with yields ranging from 10% to 11.83%, dependent on unit currency and class.
Key Features of the Triumph Credit Facility
The credit facility with Triumph spans a term of 36 months, requiring monthly interest payments on the outstanding balance, determined monthly in arrears based on SOFR plus a reasonable credit spread. The Loan is duly secured against all current and future assets of Flow Capital. Additionally, the Loan Agreement includes standard financial and negative covenants that are typical of revolving credit facilities.
Company Overview: Flow Capital Corp.
Founded in 2018, Flow Capital Corp. stands out as a publicly listed venture debt lender catering to high-growth companies. The organization's strategic focus has allowed it to extend financing across the US, UK, and Canada, assisting businesses in achieving rapid growth while avoiding the pitfalls associated with equity financing or conventional bank loans. Flow Capital actively targets those companies seeking capital between $3 to $7 million to fuel their growth journeys.
About TBK Bank, SSB
TBK Bank, SSB, affiliated with Triumph Financial, Inc. (Nasdaq: TFIN), is a robust financial institution offering a range of consumer, business, and commercial banking solutions. With a wide network across states including Texas, Colorado, Kansas, New Mexico, Iowa, and Illinois, TBK Bank is committed to addressing the financial needs of its customers through various Asset Based Lending products.
Contact Information
For further information regarding Flow Capital, please reach out to:
Flow Capital Corp.
Alex Baluta
Chief Executive Officer
alex@flowcap.com
47 Colborne Street, Suite 303
Toronto, Ontario M5E 1P8
Frequently Asked Questions
What is the amount of the credit facility Flow Capital secured?
Flow Capital secured a revolving committed credit facility amounting to up to US$15 million.
Who did Flow Capital partner with for this credit facility?
Flow Capital partnered with TBK Bank, SSB to secure the credit facility.
What are the intended uses for the credit facility?
The credit facility is intended to finance additional investments and support general operating and corporate purposes.
How does Flow Capital create value for its stakeholders?
Flow Capital creates value through senior secured loans, yielding significant returns for shareholders and compelling income streams for debenture holders.
What is the term length of the Triumph credit facility?
The credit facility has a term of 36 months, with monthly interest payments based on the outstanding loan balance.
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