Accord Financial Corp. and Concentra Bank announced the formation of a strategic alliance and a $5 million private placement of convertible unsecured subordinated debentures. The strategic alliance, expected to be formalized by Sept. 30, will allow both parties to deliver a broader range of banking and financing solutions to their clients, enhancing the value they deliver in their respective markets. Accord and Concentra will also consider developing new products together as opportunities arise.

Highlights

• With more than $35 billion of total assets under administration, Concentra is the leading provider of wholesale banking and trust solutions to credit unions across Canada.
• Accord is one of North America's leading independent commercial finance companies, serving a broad base of the country's most dynamic industries since 1978
• The alliance will capitalize on significant cross-referral opportunities, giving each organization access to new markets and enhancing their value proposition within existing markets
• Concentra's investment in Accord will boost its capital base, paving the way for continued growth.

Accord's asset-based lending, factoring and equipment finance solutions have been embraced by small and medium-sized businesses throughout Canada and the United States. Through this strategic alliance, Concentra will offer Accord's suite of innovative solutions through its network of 200+ credit unions, serving 5.5 million customers, of which approximately 10 percent are commercial clients.

“This alliance is an outstanding opportunity for us to reach a broad cross-section of the Canadian economy, especially in areas and industries under-served by the traditional banks,” said Simon Hitzig, Accord's President and CEO. “We look forward to enhancing the business relationships each organization already has, and creating new ones together.”

Concentra, as a Schedule I chartered bank, offers a comprehensive suite of banking products, including deposits, cash management, senior bank debt and trust services. Accord plans to offer these same products to its coast-to-coast network of business clients who would benefit extensively from these solutions.

“This alliance enhances the solution set we can deliver through the credit union system and gives us access to a new channel to deliver our unique banking solutions,” said Concentra President and CEO Don Coulter. “Both organizations bring an entrepreneurial spirit to serving Canada's business community, an approach that naturally puts us on the same page as our clients.”

In connection to this strategic partnership, Concentra has invested $5 million in unlisted Series B convertible unsecured subordinated debentures via private placement. Accord will use the net proceeds of the private placement of Debentures to repay a portion of its bank indebtedness and for general and working capital purposes.

INFOR Financial Inc. acted as the exclusive financial advisor to Accord in connection with the establishment of the strategic partnership and the private placement.