Zedcor Inc. Announces New Increased $50 Million Credit Facility
October 06, 2025 6:30 AM EDT | Source: Zedcor Inc.
Calgary, Alberta--(Newsfile Corp. - October 6, 2025) - Zedcor Inc. (TSXV: ZDC) ("Zedcor" or the "Company") is pleased to announce that it has entered into an agreement for a new $50 million revolving credit facility (the "Credit Facility") with National Bank of Canada ("National Bank"), its new primary lending partner. The Credit Facility replaces the Company's previous $30 million credit facility and provides access to $23.2 million of additional committed capital to fund Zedcor's growth initiatives. Proceeds from the Credit Facility will be used to refinance existing debt of $26.8 million, fund organic growth initiatives, support working capital, and for other general corporate purposes.
Entering into the Credit Facility significantly increases Zedcor's access to non-dilutive capital, strengthening the Company's balance sheet and positioning it to continue executing on its strategic growth plan. The Credit Facility requires monthly interest-only payments, providing enhanced financial flexibility at a more efficient cost of capital.
Highlights of the Credit Facility Include:
- Expanded Capital Availability: Increases available debt capacity to $50 million, up from $30 million under prior facilities, with an accordion feature for an additional $25 million. The accordion feature is not subject to fees until drawn.
- Extended Maturity:The new facility matures three years from closing, compared with the previous facility's December 2027 maturity.
- Supportive Covenants: Net Funded Debt to EBITDA of 3.5x and a Fixed Charge Coverage Ratio of 1.15x, providing greater operating flexibility.
- Improved Interest Rate: Interest rate reduced by approximately 75 basis points annually, depending on the Company's leverage ratio.
The Credit Facility is secured with a first charge over the Company's present and future assets, and other standard financial and non-financial security consistent with the previous facility. Given the Company's current financial position and projected financial performance, together with its expectations regarding interest rates, Zedcor expects the Credit Facility to immediately lower its interest payable by approximately 75 bps from Prime + 1.5% under the previous facility to Prime + 0.75% under the new Credit Facility.
Todd Ziniuk, President and CEO of Zedcor commented: "We are pleased to welcome National Bank of Canada as a new lending partner. This expanded facility provides Zedcor with flexible, non-dilutive capital at an optimized cost, supporting both our near-term growth initiatives and long-term strategy. With leverage well below covenant thresholds, we have significant capacity to fund expansion while maintaining financial discipline. Demand for our solutions in Canada and the United States continues to grow, and we continue to scale our manufacturing capacity to meet this opportunity. The Credit Facility will allow us to execute our core business plan while advancing enhancements to our hardware and customer service platform. We remain committed to driving industry-leading security outcomes and service levels for our customers."
Management Changes
Zedcor announces that Tony Ciarla, President Corporate Development, has departed from the Company. Zedcor would like to thank him for his dedication to the Company and wishes him continued success in future endeavors.
About Zedcor Inc.
Zedcor Inc. is disrupting the traditional physical security industry through its proprietary MobileyeZTMsecurity towers by providing turnkey and customized mobile surveillance and live monitoring solutions to blue-chip customers across North America. The Company continues to expand its established platform of MobileyeZ™ towers in Canada and the United States, with emphasis on industry leading service levels, data-supported efficiency outcomes, and continued innovation. Zedcor services the Canadian market through equipment and service centers currently located in British Columbia, Alberta, Manitoba, and Ontario. The Company continues to advance its U.S. expansion which now has the capacity to service markets throughout the Midwest and West Coast with locations throughout Texas and in Denver, Colorado, Phoenix, Arizona and Las Vegas, Nevada.
Forward-Looking Statements
Certain statements included in this news release constitute forward-looking statements or forward-looking information, including the effect of the Credit Facility on the Company's business, expectations regarding the interest rate payable under the Credit Facility, expectations regarding the use of proceeds from the Credit Facility, expectations regarding available debt capacity and operating flexibility, expectations regarding growth initiatives and strategy, and expectations regarding customer demand and scaling of manufacturing capacity. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "continue", "plan", "intend", "estimate", "propose", "budget", "should", "project", "would", "may" or similar words suggesting future outcomes or expectations, including negative or grammatical variations thereof. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements because the Company can give no assurance that such statements will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties. These assumptions include anticipated manufacturing capacity and expected fleet numbers, expected utilization rates, customer growth, the impact of tariffs on the Company's business and customer buying trends, and changes in the regulatory environment and political landscape in each of Canada and the United States. Although management believes these assumptions are reasonable, there can be no assurance that they will prove to be correct, and actual results will differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements or information contained in this news release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless it is required by any applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
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