Tucows Inc. Announces New Credit Facility with Bank of Montreal

TORONTO, Sept. 26, 2023 /CNW/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC),  a global company dedicated to making the internet better, is pleased to announce that on September 22, 2023, the company and its wholly owned subsidiaries entered into a new Credit Agreement with Bank of Montreal ("BMO") as administrative agent which provides for a revolving Credit Facility of up to $240 million, with an accordion for $60 million. The new Credit Agreement replaces the existing Third Amended and Restated Credit Agreement with Royal Bank of Canada ("RBC"), with the new Credit Facility set to expire on September 22, 2026, marking the third anniversary of the effective date of the agreement.

The new Credit Agreement involves several key terms and provisions with slightly better borrowing costs and leverage covenants that provide further stability for the next three years to Tucows' financial position and to support its growth initiatives.

Tucows is excited about this strategic partnership with Bank of Montreal and the other members of the syndicate, including TD Bank, Bank of Nova Scotia, CIBC, National Bank of Canada, Business Development Bank of Canada and HSBC Bank Canada.

The Credit Agreement also contains customary representations and warranties, affirmative and negative covenants, and events of default. Tucows is committed to maintaining specific financial covenants, including leverage and interest coverage ratios.

In connection with entering into the Credit Agreement, Tucows has paid off the principal balance, including accrued interest, of the revolving loans outstanding under the Third Amended and Restated Credit Agreement with RBC. Tucows thanks RBC for their support during the past four years.

For more information, please refer to the Credit Agreement filed in Tucows' 8K on September 25, 2023.

Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting (https://ting.com) delivers fixed fiber Internet access with outstanding customer support. Wavelo (https://wavelo.com) is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains (https://tucowsdomains.com) manages approximately 24 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs. Hover (https://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows' corporate website (https://tucows.com).

Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectations regarding our ability to realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows' business, results of operations and financial condition is included in the Risk Factors sections of Tucows' filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

SOURCE Tucows Inc.