Zedcor lands $70.3M credit expansion as it ramps up US branches
What's the deal? ZedcorDealroom has a profile for this one. Try Dealroom →, a Calgary-based video monitoring provider, has expanded its credit facility with National Bank of CanadaDealroom has a profile for this one. Try Dealroom → to US$73.3M, up from US$55M. The move is post-IPO debt, not equity, keeping the raise non-dilutive for shareholders.
What's the endgame? Zedcor designs and manufactures its MobileyeZ mobile security towers and runs its own video monitoring under a Video Surveillance as a Service model. The expanded facility also carries a US$36.7M uncommitted accordion feature, lifting potential borrowing capacity to US$110M.
Why now? The company says demand for its surveillance and live monitoring tools is strong across Canada and the United States, and it is ramping up production to clear a backlog. The other terms and covenants of the facility are unchanged.
Across the border: Zedcor is opening new branch locations in the US, where it operates service centres with the capacity to serve markets nationwide. The extra capital is meant to fund that expansion alongside recent enterprise sales wins.
Chief executive officer Todd Ziniuk said the larger facility "provides significant non-dilutive funding capacity at a critical period of accelerated branch expansion and successful enterprise sales awards." He pointed to recurring revenue as the basis for the company's confidence in future cash flows.
The signal: By leaning on debt rather than equity, Zedcor is betting its recurring-revenue model can finance North American growth without diluting shareholders — a sign of maturing confidence in its cash flows.
Read more: wallstreet-online.de
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