GreenPower Receives $10M Financing and $2.95M in Standby Credit Facilities
GreenPower Motor Company has secured $10 million in financing facilities and $2.95 million in standby letter of credit facilities to accelerate production of all-electric vehicles.
$10 million
$2.95 million
$5 million
What Happened
GreenPower Motor Company announced it has received credit approval from CIBC for $5 million in financing facilities, including a $3 million revolving line of credit and a $2 million term loan with a three-year term. Additionally, the company secured a $450,000 letter of credit and a $2.5 million standby letter of credit facility, subject to approval from another financial institution. The company also closed $5 million in term loans from two family offices. Proceeds will be used to repay existing debt and for general corporate purposes.
- $3 million revolving line of credit from CIBC
- $2 million term loan from CIBC
- $450,000 letter of credit secured by cash collateral
- $2.5 million standby letter of credit facility (subject to approval)
- $5 million in term loans from two family offices
Why this matters
The financing helps GreenPower recapitalize and fulfill existing orders for its all-electric medium and heavy-duty vehicles, supporting its growth in the zero-emission vehicle market.
Terms in This Story
- revolving line of credit
- A credit facility that allows a borrower to draw, repay, and redraw funds up to a set limit.
- term loan
- A loan with a fixed repayment schedule over a set period.
- letter of credit
- A bank guarantee that a buyer's payment will be made on time.
- family office
- A private wealth management firm serving high-net-worth individuals or families.
Summarised from the linked release; details can be imperfect — always verify against the original source.