The Lion Electric Company Announces Amendments to Credit Agreements
MONTREAL, Dec. 1, 2024 /PRNewswire/ –
The Lion Electric Company (NYSE: LEV) (TSX: LEV) (“Lion” or the “Company”), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, announced today that it has entered into additional amendments to its senior revolving credit agreement and loan agreement. These agreements were entered into with a syndicate of lenders represented by National Bank of Canada, Bank of Montreal, and Federation des Caisses Desjardins du Québec, Finalta Capital, and Caisse de dépôt et placement du Quebec.
The amendments aim to extend the period applicable to the previously announced suspension of the financial covenants under the Revolving Credit Agreement and extend the maturity date under the Finalta CDPQ Loan Agreement. These extensions will now run until December 16, 2024. An additional advance will be made under the Revolving Credit Agreement, and the Company will be allowed to use a limited portion of the receivables to fund its minimum liquidity needs until the new deadline.
These amendments provide Lion Electric Company with the necessary financial flexibility to navigate through the current economic challenges and ensure operational continuity.
Effects on Stakeholders
For shareholders and investors, the extended agreements offer peace of mind by providing the Company with a cushion to maintain financial stability and focus on executing its strategic initiatives. It demonstrates the lenders’ confidence in Lion Electric Company’s long-term growth prospects.
Effect on the World
As a leading manufacturer of electric vehicles, Lion Electric Company’s continued operations and financial stability are crucial for the advancement of sustainable transportation solutions globally. The amendments to the credit agreements ensure that the Company can continue its mission of providing innovative, eco-friendly urban vehicles to help reduce carbon emissions and combat climate change.
Conclusion
The amendments to Lion Electric Company’s credit agreements demonstrate a commitment to financial prudence and strategic planning during uncertain times. By securing additional flexibility and support from its lenders, the Company can remain focused on its core mission of driving the adoption of electric vehicles and contributing to a more sustainable future.
