CDPQ and Finalta Capital fund $30M to Lion Electric
by CM Staff
The credit facility is granted for a maximum principal amount of $30 million.
LionC electric school bus (CNW Group/Lion Electric)
MONTRÉAL — Finalta Capital and The Lion Electric Company have announced the closing of an agreement for a new credit facility for Lion funded equally by CDPQ and Finalta Capital.
The credit facility is granted for a maximum principal amount of $30 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 in relation to certain vehicles that the company has already delivered.
Upon closing of the financing, an amount of $30 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. 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,” said Marc Bédard, CEO–founder of Lion in a statement.
