News Releases

Avigilon Announces New US$200 (CDN$250) Million Syndicated Credit Facility


VANCOUVER, April 7, 2015 /CNW/ - Avigilon Corporation ("Avigilon") (TSX:AVO), a leading global provider of end-to-end security solutions, today announced the signing of a new multi-tranche US$200 (CDN$250) million senior secured syndicated credit facility (the "Credit Facility"). The Credit Facility includes a US$100 million multi-currency revolving acquisition facility (the "Acquisition Facility"), a US$60 million multi-currency revolving line (the "Revolver"), and a US$40 million real estate term loan (the "Real Estate Loan"). The Credit Facility has a three-year term and carries interest at Avigilon's option of either prime rate, U.S. base rate, banker's acceptance rate, or Libor plus a margin based on Avigilon's senior consolidated debt to EBITDA ratio. 

HSBC Bank Canada ("HSBC") acted as lead arranger and sole book runner in connection with the Credit Facility. The syndicate of lenders, led by HSBC as administrative agent, is comprised of the following six additional leading banks and financial institutions: Toronto-Dominion Bank; BMO Bank of Montreal; National Bank of Canada; Canadian Imperial Bank of Commerce; Business Development Bank of Canada; and Export Development Canada.

The Acquisition Facility will be used in connection with certain corporate acquisitions made by Avigilon. As part of closing the Credit Facility, Avigilon has requested a US$80.3 million drawdown from the Acquisition Facility in order to retroactively fund the December 17, 2014 acquisition of the entire patent portfolio and the patent licensing program of ObjectVideo, Inc. Avigilon has the option to request that the Acquisition Facility be expanded to US$150 million through the exercise of a US$50 million accordion feature, subject to review and approval of the lenders. The Revolver replaces the Company's current undrawn CDN$12 million credit facility, and is intended to finance ongoing working capital, capital expenditures, and general corporate purposes. Finally, Avigilon has obtained the Real Estate Loan to partially fund the purchase of its new global headquarters in Vancouver, British Columbia, and improvements thereto.

All debts, liabilities and obligations of the Company under the Credit Facility are being secured by a first-ranking security interest over all present and future assets, property and undertakings of the Company and its subsidiaries.

"The Credit Facility funds the purchase of our future global headquarters, and helps provide for our ongoing growth. We're very pleased to have the Credit Facility in place, and to have seven leading financial institutions available to support our operations and growth," said Alexander Fernandes, Avigilon's Founder, President, CEO and Chairman of the Board.

About Avigilon

Avigilon Corporation is defining the future of protection through innovative end-to-end security solutions. Avigilon's industry-leading HD network video management software, megapixel cameras, access control and video analytics products are reinventing the security market. Information about Avigilon can be found at

AVIGILON and other marks used herein are the registered and/or unregistered trademarks of Avigilon Corporation and/or its subsidiaries in Canada and other jurisdictions worldwide. Other product names mentioned herein may be the registered and/or unregistered trademarks of their respective owners.

Forward-Looking Information

Certain statements contained in this news release, including all statements that are not historical facts, contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements normally include words like 'believe', 'expect', 'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may', 'will', 'should', 'ongoing' and similar expressions, and within this news release include, without limitation, statements (express or implied) respecting the ongoing ability of Avigilon to access the funds under the Credit Facility, the intended uses of the funds available under the Credit Facility and the future growth of Avigilon.

Forward-looking statements are not guarantees of future performance, actions or developments and are based on management's expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Management has based the forward-looking statements in this news release on estimates and assumptions that it believes are reasonable at the current time, including without limitation, assumptions that: Avigilon will, on an ongoing basis, remain in good standing under the terms of the Credit Facility; Avigilon will be able to complete the intended purchase and renovation of its new corporate headquarters; and Avigilon will be able to successfully execute its mission, strategies and objectives. Actual results could, however, be substantially different due to the risks and uncertainties associated with and inherent to Avigilon's business, as more particularly described in the "Risk Factors" section of Avigilon's Annual Information Form dated March 3, 2015, which is available under Avigilon's profile on SEDAR at Additional risks and uncertainties applicable to the forward looking statements set out in this news release include, but are not limited to: unforeseen events or changes to Avigilon's business or financial situation that could cause it to no longer be able to access the funds available under the Credit Facility; and the closing conditions to the intended purchase of the new corporate headquarters not being met in a timely fashion or at all. Although Avigilon has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of Avigilon. Accordingly, readers should not place undue reliance on forward-looking statements.

Avigilon undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained herein are qualified by this cautionary statement.

SOURCE Avigilon Corporation

Investor relations: Dennis Fong, Avigilon Corporation, T: (604) 629-5182 ext. 2515,; Media relations: Brett White, Avigilon Corporation, T: (469) 484-5458, Ext 3063,