The Lion Electric Company
Finalta Capital, one of Canada's largest private debt funds, CDPQ, a global investment group, and The Lion Electric Company, a manufacturer of all-electric medium and heavy-duty urban vehicles, closed an agreement for a new credit facility for Lion funded equally by CDPQ and Finalta Capital.
The credit facility is granted for a maximum of $22.4 million. This bespoke financing is guaranteed by a security interest on substantially all movable property of Lion and some of its subsidiaries, including a senior security on certain governmental and tax incentives and credits to be received by Lion, notably in relation to certain vehicles Lion has already delivered. Upon closing of the financing, $22.4 million was drawn on the credit facility. Lion used a portion of the drawn amount to pay down previous credit facilities it had concluded with Finalta Capital in May 2021.
"With growing demand and fleet owners wishing to make the transition toward electric vehicles, this new credit facility provides an additional tool to finance our activities at a critical moment in our growth,” says Marc Bédard, CEO–Founder of Lion. “In North America, the transportation industry is one of the leading emitters of greenhouse gases, making it essential to electrify medium- and heavy-duty transportation as part of the fight against climate change. This provides an unprecedented opportunity for a company like Lion. We are delighted to welcome CDPQ among our capital providers and to extend our existing partnership with Finalta Capital."
"Lion's industry is undergoing extensive transformation toward the adoption of green transportation in North America. With this first transaction in Lion, CDPQ affirms its desire to support an important player in sustainable mobility in Québec in executing its business plan by providing flexible financing as part of our Capital Solutions strategy," adds Marc Cormier, Executive Vice President, and Head of Fixed Income at CDPQ. "We are delighted to contribute funding, put in place with the expertise of Finalta Capital, that is adapted to the Company's operational reality and highly tailored to its current needs."
"Finalta Capital is happy to continue supporting Lion—now in close collaboration with CDPQ—in its efforts to propel the electrification of transport using cutting-edge technology entirely developed in Québec,” says Pierre-Luc Labelle, President and COO at Finalta Capital. “We are also proud to benefit from the trust of CDPQ as a partner in this strategic and tailored financing for Lion's capital structure."