NextPoint Financial Inc. (TSX: NPF.U) (OTC: NACQF) today announced the completion of an amendment to NextPoint’s existing revolving credit facility with affiliates of Basepoint Capital, which provides for a new $74.4 million term loan to LT Holdco, LLC, a NextPoint subsidiary. Proceeds from the term loan will be drawn in two advances and will be used to pay down borrowings under an existing revolving credit facility and to provide additional working capital for NextPoint and its Liberty Tax business.
NextPoint CEO, Brent Turner, commented, “As we approach tax season, this support from our existing lenders, led by Basepoint Capital, provides a solid working capital position to fund NextPoint and our Liberty Tax subsidiary operations. The amended agreement also maintains good standing with respect to debt covenants going forward.”
Debt funding for NextPoint’s Community Tax subsidiary continues to be provided by a $45 million first lien term loan and $25 million principal amount of second lien term loans with existing lenders from the onset of that acquisition.
NextPoint provides financial services to empower hardworking and underserved consumers and small businesses. NextPoint solutions include Liberty Tax, a leading provider of tax preparation services, and Community Tax, acquired in December 2021, an effective tax debt resolution advocate for customers.
