Anthony Clark secures debt financing arrangement

Anthony Clark International Insurance Brokers Ltd. (“ACL”) closed a $30,750,000 (US$25,000,000) secured debt financing arrangement with the lenders Bridge Healthcare Finance, LLC (“BHF”) and Bridge Opportunity Finance, LLC (“BOF”). These lenders are providing Addison York Insurance Brokers Ltd. the US wholly-owned subsidiary of Anthony Clark with a five year term loan facility of $30,750,000 (US$25,000,000), which is set to mature in five years with interest at a rate of prime plus 6.25% and an effective rate reduction of 1.5% and 2.5% for new equity raised in the amount of US$3 million and US$5 million and principal payable during a preset term based on excess cash flow availability. Anthony Clark and Heritage Hill Insurance Ltd. (“Heritage”), a Canadian wholly owned subsidiary of Anthony Clark, have guaranteed the facility which Addison will use to repay the existing FCC and Oak Street credit facilities as well as certain other obligations amounting to approximately US$7.5 Million. The balance of the Facility will be further utilized to fund future acquisitions of general insurance brokerages within the U.S.. Anthony Clark has also issued the lenders a total of 1,439,128 warrants exercisable to purchase 1,439,128 common shares at a price of $0.80 per share for a five-year period following the closing of this financing.