Dye & Durham Makes Strides to Improve Debt Profile

By Adriano Marchese

Dye & Durham said Thursday it has increased the portion of its fixed-rate debt and the size of its debt repurchase program.

The Canadian cloud-based software company said it has entered into a 250 million Canadian dollar ($183.9 million) interest-rate swap to manage its exposure to interest rate fluctuations. As a result, 41% of the company's debt is now fixed-rate debt, up from 24% previously.

Dye & Durham shares have been under continuous pressure since the company said it was investing more into mergers and acquisitions in its fourth fiscal-quarter results in September.

Since then, it has made an about-face. In mid-November, Dye & Durham launched a strategic review of its non-core assets with the aim of significantly expediting its plans to reduce its leverage ratio.

It said at the time that it would consider a number of options to generate additional capital to bring down debt levels, including the potential sale of some of its assets, such as the company's financial services business, among others.

On Thursday, Chief Executive Matthew Proud said the review is moving ahead at a good pace, but the company is still taking these important steps to further strengthen its balance sheet.

Additionally, Dye & Durham said that it has increased its substantial issuer bid to buy back up to C$100 million of the aggregate amount of its debentures.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

December 07, 2023 08:08 ET (13:08 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.