12:03 PM EDT, 07/02/2024 (MT Newswires) -- Lion Electric ( LEV ) , a manufacturer of electric medium and heavy-duty vehicles, on Tuesday said it amended certain senior credit instruments and signed for a new $5 million loan.

The senior credit instruments to be amended are Lion Electric's ( LEV ) senior revolving credit agreement with a syndicate of lenders led by National Bank of Canada, its loan agreement with Finalta Capital and Caisse de depot et placement du Quebec (CDPQ), and its non-convertible debentures issued to a group of investors led by Mach Group and the Mirella & Lino Saputo Foundation.

The amendments provide for the suspension of the financial covenants applicable under the revolving credit agreement until Sept. 30. In exchange, the company will be required to maintain a minimum amount of available liquidity of $15 million during the relief period.

The company will also be subject to enhanced reporting obligations and limitations on the use of any advances made under the revolver until such time that the amount available to be drawn equals or exceeds 50% of the total borrowing capacity for 30 consecutive days.

The amendments also provide for certain increases in the applicable pricing grid and the effective deferral of the interest payable under the revolver during the relief period.

The amendment of the loan agreement with Finalta and CDPQ provides for a minimum available liquidity requirement aligned during the relief period. The amendment also provides for an increase in the applicable interest rate to 13% and capitalization of 50% of the interest payable during the relief period.

The amendment of the non-convertible debentures provides for the capitalization of 50% of the interest payable under the debentures during the relief period.

A new agreement with Investissement Quebec provides for a loan under the ESSOR program amounting to $5 million, which may be drawn up to $7.5 million. The loan has an initial term of three years, bears interest at a fixed annual rate of 13% and provides for a moratorium of 12 months on the payment of any principal and interest.

Lion Electric ( LEV ) shares were last seen down $0.055 to $1.175 on the Toronto Stock Exchange.

Price: 1.17, Change: -0.06, Percent Change: -4.88