Flow Capital Announces US$15 Million Credit Facility

TORONTO, Aug. 26, 2024 (GLOBE NEWSWIRE) -- Flow Capital Corp. (TSXV: FW) ("Flow Capital" or the "Company"), a leading provider of growth venture debt in the form of senior secured loans to high-growth companies, is pleased to announce that it has entered into a loan agreement (the "Loan Agreement") with TBK Bank, SSB (“Triumph”), for a revolving committed credit facility in the principal amount of up to US$15 million.

Flow Capital intends to use the credit facility to finance additional investments and for general operating and corporate purposes. “Partnering with Triumph marks a significant milestone for Flow Capital,” said Alex Baluta, CEO of Flow Capital. “We are thrilled that Triumph has the confidence in our track record, processes, team, and overall strategy, to partner with us."

“As we announced this past June 12, the 6-year portfolio-level IRR generated from our senior secured loan portfolio of growth venture debt loans stands at over 26%. As we consider our long-term optimal capital structure, this credit line will be a small but important component of our capital stack. This warehouse-type credit facility will help us maintain our steady pace of deployment, while our priority remains raising funds through our redeemable floating rate debentures, which will continue to be our primary funding source,” said Mr. Baluta.

“We are proud of the success of our portfolio companies over the past six years. By focusing on senior secured loans to high-growth companies, we have generated meaningful value for our shareholders while also providing a compelling return and income stream for our debenture holders, who are currently earning a yield between 10% and 11.83% (depending on unit currency and class),” Mr. Baluta continued.

The Triumph credit facility has a term of 36 months, with monthly interest payments to be made on the outstanding balance of the Loan, calculated monthly in arrears, based on SOFR plus a commercially reasonable credit spread. The Loan is secured against all present and after-acquired property of the Company. The Loan Agreement contains standard financial and negative covenants typical for a revolving credit facility.

In consideration of the amounts made available to the Company under the Loan, the Company will pay a finder’s fee commission to TerraNova Capital Equities, Inc.

About Flow Capital

Flow Capital Corp. is a Canadian-based, publicly listed venture debt lender dedicated to supporting high-growth companies. Since its inception in 2018, the company has provided financing to businesses in the US, the UK, and Canada, helping them achieve accelerated growth without the dilutive impact of equity financing or the complexities of traditional bank loans. Flow Capital focuses on revenue-generating, VC-backed, and founder-owned companies seeking $3 to $7 million in capital to drive their continued expansion. For more information, visit  www.flowcap.com.

About TBK Bank, SSB

TBK Bank, SSB, member FDIC, is a subsidiary of Triumph Financial, Inc. (Nasdaq: TFIN), offering consumer, business and commercial banking products and solutions from branches throughout Texas, Colorado, Kansas, New Mexico, Iowa and Illinois. Asset Based Lending products and Services are offered by TBK Bank, SSB DBA Triumph. Visit www.tbkbank.com to learn more.

For further information, please contact:

Flow Capital Corp.

Alex Baluta
Chief Executive Officer
alex@flowcap.com

47 Colborne Street, Suite 303
Toronto, Ontario M5E 1P8

Forward-Looking Information and Statements

Certain statements herein may be “forward-looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Flow or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Flow assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances.