Flow Capital Announces New Credit Facility
Flow Capital Corp. (TSXV: FW), a prominent provider of growth venture debt, has made a significant advancement by entering into a loan agreement with TBK Bank, SSB. This deal establishes a revolving committed credit facility of up to US$15 million, which is anticipated to enhance Flow Capital's capacity to finance investments and meet its operational requirements.
Objective of the Credit Facility
The main goal of this newly acquired credit facility is to expedite the company’s investments and support its overall corporate activities. Alex Baluta, CEO of Flow Capital, expressed his excitement about the partnership 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 collaboration marks a significant milestone for Flow Capital as it solidifies its role as a key player in the venture debt industry.
Positive Returns and Strategic Development
In a recent update, it was highlighted that the 6-year portfolio-level internal rate of return (IRR) from Flow Capital's senior secured loan portfolio exceeds 26%. Baluta explained that this credit line will act as a small yet vital part of their capital structure, allowing for a consistent pace of deployment. The company continues to focus on raising funds through redeemable floating rate debentures, which remain their primary funding source.
Creating Value for Stakeholders
Since its establishment, Flow Capital has effectively targeted high-growth companies, distinguishing itself by providing revenue-generating secured loans. This approach has generated substantial value for shareholders and offered attractive returns for debenture holders, with yields ranging from 10% to 11.83%, depending on the unit currency and class.
Key Features of the Triumph Credit Facility
The credit facility with Triumph has a term of 36 months, requiring monthly interest payments on the outstanding balance, which will be calculated monthly in arrears based on SOFR plus a reasonable credit spread. The loan is secured against all current and future assets of Flow Capital. Additionally, the loan agreement includes standard financial and negative covenants typical of revolving credit facilities.
Company Overview: Flow Capital Corp.
Founded in 2018, Flow Capital Corp. is a publicly listed venture debt lender that focuses on high-growth companies. The organization’s strategic approach has enabled it to provide financing across the US, UK, and Canada, helping businesses achieve rapid growth while steering clear of the challenges associated with equity financing or traditional bank loans. Flow Capital specifically targets companies seeking capital between $3 to $7 million to support their growth trajectories.
About TBK Bank, SSB
TBK Bank, SSB, which is affiliated with Triumph Financial, Inc. (Nasdaq: TFIN), is a strong financial institution that offers a variety of consumer, business, and commercial banking solutions. With an extensive network across states such as Texas, Colorado, Kansas, New Mexico, Iowa, and Illinois, TBK Bank is dedicated to meeting the financial needs of its customers through various Asset Based Lending products.
Contact Information
If you need more information about Flow Capital, please contact:
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.
