LegalPCF Group
Raport Bieżący Nr 16/2023: Signing of a Credit Agreement by People Can Fly Canada Inc.
24 May 20232 pages~2 min full read
People Can Fly Canada Inc. secured 9.2 million CAD in revolving credit facilities from the Bank of Montreal on May 24, 2023.
See it on page 1The financing is split into 1.2 million CAD for general working capital and 8 million CAD specifically to bridge Canadian tax incentives.
See it on page 1PCF Group S.A. provided an unsecured guarantee for the full 9.2 million CAD amount to support its Montreal-based subsidiary.
See it on page 1The Canadian subsidiary granted the bank a first-ranking security interest and a mortgage of 11.04 million CAD over its total movable property and assets.
See it on page 1Interest rates for the credit facilities are tied to the Canadian Prime Rate plus a standard market margin.
See it on page 2The agreement includes restrictive covenants that require lender approval for additional debt or changes to the company's core business scope.
See it on page 1People Can Fly Canada Inc., a Montreal-based subsidiary of the Polish game development firm PCF Group S.A., entered into a strategic credit agreement with the Bank of Montreal on May 24, 2023. This financing arrangement establishes two distinct demand revolving credit facilities totaling 9.2 million Canadian dollars. The primary objective of this capital infusion is to bolster the subsidiary’s operational liquidity and bridge the financing of Canadian tax incentives, which are critical components of the region's game development ecosystem.
The financial package is divided into a 1.2 million CAD facility dedicated to general working capital and corporate requirements, and a larger 8 million CAD facility specifically earmarked for financing tax credits. These credits are subject to annual renewal and carry interest rates based on the Canadian Prime Rate plus a standard market margin. To secure the financing, PCF Group S.A. provided an unsecured guarantee of 9.2 million CAD, while the Canadian subsidiary granted the bank a first-ranking security interest and a mortgage of 11.04 million CAD over its entire movable property and assets.
The agreement imposes standard restrictive covenants and reporting obligations on the borrower, including limitations on changing the core business scope or incurring additional financial debt without lender approval. This transaction reflects a common industry practice where international studios leverage regional tax incentives through specialized banking products to maintain steady cash flow during lengthy development cycles. The scope of this disclosure is limited to the legal and financial obligations arising from the Canadian operations of the PCF Group as of the second quarter of 2023.
