TRANSACTIONS

Selected financing solutions

Questrade

Questrade

Who: Questrade
Amount: $10.0 Million
Type of Transaction: Growth Financing
Date: December 2013

Case Study

High growth leads to early loan payoff

Canada’s 4th-largest brokerage avoids third-party equity, pays off loan ahead of time, by exceeding growth targets.

  • Canada’s largest independent discount brokerage firm and the fourh largest brokerage firm in Canada
  • Headquartered in Toronto and privately owned

Situation Overview

  • Medium term debt capital requirement to grow regulatory capital base in order to meet growth targets
  • Privately owned company with limited desire to raise third party equity

Solution

  • $10 MM, 60 month subordinated loan issued in December 2013
  • 10% interest rate + bonus tied to Questrade’s financial performance

Outcome

  • Questrade exceeded its growth targets, leading to early repayment of the loan