Dexterra Group Announces Expansion and Extension of Credit Facility

Rhea-AI Summary

Dexterra Group (HZNOF) has successfully expanded and extended its revolving credit facility, increasing it from $260 million to $425 million with an additional uncommitted accordion of $150 million. The facility's term has been extended to four years, with maturity set for September 7, 2029. The amended terms include interest rates at bank prime plus 0.50% to 1.50% or Canadian Overnight Repo Rate Average plus 1.50% to 2.50%, varying based on the company's Net Debt to EBITDA ratio. CEO Mark Becker emphasized that the improved terms reflect the company's strong business position and will support its capital allocation priorities and growth strategy while maintaining a robust balance sheet.

Positive

• Significant credit facility expansion from $260M to $425M plus $150M accordion
• Extended maturity to September 2029 providing long-term financial stability
• Improved lending terms reflecting company's strong financial position
• Enhanced financial flexibility for growth strategy and capital allocation

Negative

• None.

Toronto, Ontario--(Newsfile Corp. - June 9, 2025) - Dexterra Group Inc. (TSX: DXT) ("Dexterra Group" or the "Company") is pleased to announce that the Company and its syndicate of lenders have executed an amendment to its existing revolving credit facility (the "Facility"). Under the amendment, the Facility size has been increased from $260 million to $425 million plus an uncommitted accordion of $150 million, and the term has been extended to four years, now maturing on September 7, 2029.

The terms of the amended Facility reflects the Company's strong financial position, provides additional capacity and flexibility for the Company to execute on its capital allocation priorities, growth strategy, and to deliver long-term shareholder value.

"This expanded credit facility, secured on improved terms, reflects both the strength of our business and the confidence of our financial partners," says Mark Becker, Chief Executive Officer. "The facility allows Dexterra to deliver our strategy while we remain committed to maintaining a strong balance sheet."

The Facility provides for an interest rate at bank prime plus 0.50% to 1.50% or the Canadian Overnight Repo Rate Average plus 1.50% to 2.50% which vary, according to the total Net Debt to EBITDA ratio of the Company.

About Dexterra

Dexterra employs more than 9,000 people, delivering a range of support services for the creation, management, and operation of infrastructure across Canada and the U.S.

Powered by people, Dexterra brings best-in-class regional expertise to every challenge and delivers innovative solutions, giving clients confidence in their day-to-day operations. Activities include a comprehensive range of integrated facilities management services, industry-leading workforce accommodation solutions, and other support services for diverse clients in the public and private sectors.

For further information contact:
Denise Achonu, CFO
Head office: Airway Centre, 5925 Airport Rd., Suite 1000
Mississauga, Ontario L4V 1W1
Telephone: (905) 270-1964

You can also visit our website at dexterra.com.

Forward-Looking Information

Certain statements contained in this news release may constitute forward-looking information under applicable securities law. Forward-looking information may relate to Dexterra's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "continue"; "forecast"; "may"; "will"; "project"; "could"; "should"; "expect"; "plan"; "anticipate"; "believe"; "outlook"; "target"; "intend"; "estimate"; "predict"; "might"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding Dexterra's future purchases under the NCIB are forward-looking statements. These statements are based on certain factors and assumptions, including expected growth, market recovery, results of operations, performance and business prospects and opportunities regarding Dexterra. While management considers these assumptions to be reasonable based on information currently available to Dexterra, they may prove to be incorrect. Forward-looking information is also subject to certain known and unknown risks, uncertainties and other factors that could cause Dexterra's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information, including, but not limited to: the ability to retain clients, renew existing contracts and obtain new business; an outbreak of contagious disease that could disrupt its business; the highly competitive nature of the industries in which Dexterra operates; outsourcing of services trends; reliance on suppliers and subcontractors; cost inflation; U.S. tariff impacts; volatility of industry conditions could impact demand for its services; a reduction in the availability of credit could reduce demand for Dexterra's products and services; Dexterra's significant shareholder may substantially influence its direction and operations and its interests may not align with other shareholders; its significant shareholder's 51% ownership interest may impact the liquidity of the common shares; cash flow may not be sufficient to fund its ongoing activities at all times; loss of key personnel; the failure to receive or renew permits or security clearances; significant legal proceedings or regulatory proceedings/changes; environmental damage and liability is an operating risk in the industries in which Dexterra operates; climate changes could increase Dexterra's operating costs and reduce demand for its services; liabilities for failure to comply with public procurement laws and regulations; any deterioration in safety performance could result in a decline in the demand for its products and services; failure to realize anticipated benefits of acquisitions and dispositions; inability to develop and maintain relationships with Indigenous communities; the seasonality of Dexterra's business; inability to restore or replace critical capacity in a timely manner; reputational, competitive and financial risk related to cyber-attacks and breaches; failure to effectively identify and manage disruptive technology; economic downturns can reduce demand for Dexterra's services; its insurance program may not fully cover losses. Additional risks and uncertainties are described in Note 23 to the financial statements contained in Dexterra's most recent annual report filed with securities regulatory authorities in Canada and available on SEDAR at sedarplus.ca. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Dexterra is under no obligation and does not undertake to update or alter this information at any time, except as may be required by applicable securities law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254865

FAQ

What is the new size of Dexterra Group's (HZNOF) credit facility?

Dexterra Group's credit facility has been increased from $260 million to $425 million, plus an uncommitted accordion of $150 million

When does Dexterra Group's new credit facility mature?

The credit facility matures on September 7, 2029, with a four-year term

What are the interest rates for Dexterra's new credit facility?

Interest rates vary from bank prime plus 0.50% to 1.50% or Canadian Overnight Repo Rate Average plus 1.50% to 2.50%, based on the company's Net Debt to EBITDA ratio

How will the expanded credit facility benefit Dexterra Group?

The expanded facility provides additional capacity and flexibility for executing capital allocation priorities, growth strategy, and delivering long-term shareholder value while maintaining a strong balance sheet