Does the expanded credit facility used to fund the GBR transaction change the company's leverage risk profile or debt covenants?

On July 24, 2026, we amended our credit facility to increase it from C$225.0 million to C$350.0 million. The amended facility replaced our previous term and revolving credit facility with a single revolving facility with no principal repayments required, and the maturity was extended from August 2028 to July 2030. The facility bears interest at variable rates based on the total net debt ratio, with pricing improvements as that ratio improves.

We subsequently drew down C$100.0 million on this amended facility to fund the Great Bay Renewables transaction on July 30, 2026, which increased our effective interest in GBR from 29% to 50%.

Regarding leverage risk and debt covenants, our credit facility remains subject to certain restrictive conditions, including financial covenants that require us to comply with certain financial ratios, financial condition tests, and other restrictive covenants. As of the amendment, the debt balance outstanding of approximately C$87 million was transferred to the amended facility. We monitor this risk by analyzing financial results, calculating our commitments, and maintaining ongoing communications with creditors. The amended facility structure, moving to a single revolving facility with no mandatory principal repayments and extending maturity to July 2030, provides greater flexibility compared to the prior amortizing term structure, though the underlying covenant framework remains in place.

The company's leverage profile changes with the new debt and less cash on the balance sheet because we used cash to complete the purchase of the increased ownership of GBR. We then completed an equity offering that partially replenished the acquisition cost. The new debt does not have a required principal amortization each quarter, so the debt level will remain at ~$187 million unless we pay it down. On the other hand, we have higher revenue due to the increased ownership of GBR so our ratios related to EBITDA and interest coverage are likely to be lower in the near term but trending toward our historical levels based on the five year growth charts contained in our prospectus or investor presentations.