Loyalist Group Ltd (C:LOY) Shares Issued 148,814,592 Last Close 11/14/2014 $0.455 Monday November 17 2014 - News Release
Mr. Andrew Ryu reports
LOYALIST ANNOUNCES NEW $18.5 MILLION CREDIT FACILITY
Loyalist Group Ltd. has entered into a new $18.5-million credit facility, replacing the company's current credit facility thus adding an additional $18-million of capital to support Loyalist's growth.
"The additional capital provided by the new credit facility will allow us to fund our aggressive growth and acquisition program," said chief executive officer Andrew Ryu. "We believe the ability to obtain a facility of this size signifies a new phase in the maturation of Loyalist."
Mr. Ryu added that: "Previously we have raised equity capital to fund our acquisition plans. The credit facility will now allow us to manage our capital structure in a more efficient manner and to continue to grow without diluting our existing shareholders."
The new credit facility expires on Nov. 17, 2019, and comprises a $3.5-million revolving operating facility and a $15-million term loan acquisition facility. The facilities are being provided by Bank of Montreal. Both facilities bear interest at the Canadian dollar prime rate plus 1.25 per cent to 1.75 per cent, depending on the company's debt to EBITDA (earnings before interest, taxes, depreciation and amortization) ratio. The acquisition facility may be drawn upon in periodic advances as required until Nov. 17, 2016, and can be repaid at any time without penalty.
The new credit facility is secured by a first charge over all of the assets of Loyalist and its subsidiaries, contains positive, negative and financial covenants, and includes other usual and customary terms and conditions.
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