Accord Financial extends bank facility amid debt refinancing push

Accord Financial extended its senior bank facility to Oct. 31 as the Canadian commercial finance company works to refinance debt and focus on small business lending in Canada.

Toronto-based Accord amended the facility June 12, increasing total commitments to $70 million from $65 million, according to a release today. The amendment includes milestones tied to Accord’s debt refinancing plan, including proposed changes to its subordinated debentures and certain unsecured notes.

The company reduced the balance on its bank facility to about $52 million from about $148 million at yearend 2025 after leaving the U.S. market and receiving repayments on noncore portfolio assets. The company now operates entirely in Canada, with a focus on small business lending.

Accord also reached an agreement in principle with President and Chief Executive Simon Hitzig and his family to amend about $11 million in unsecured notes. If the bank facility is refinanced by Dec. 31, the notes extended to Oct. 31, 2031, according to the release. If not, the notes would mature Oct. 31, 2027. The notes would carry no interest for the first two years and 7% interest thereafter.

The company is also seeking approval from holders of its 12% unsecured subordinated debentures due July 31 to extend the maturity to Oct. 31, 2031, subject to the bank facility refinancing, according to the release. The company scheduled a special debentureholder meeting for July 27.

Accord provides asset-based lending, factoring, inventory finance, equipment finance and trade finance to small and midsize businesses, according to the release.

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