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Diamond Estates Wines and Spirits Announces New Credit Facilities with Bank of Montreal
Diamond Estates Wines and Spirits Announces New Credit Facilities with Bank of Montreal ...
About this update from Diamond Estates Wines & Spirits, Inc.
[{"type":"text","content":"\n\n\n\nDiamond Estates Wines and Spirits Announces New Credit Facilities with Bank of Montreal\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nNIAGARA-ON-THE-LAKE, ON, Oct. 2, 2017\n\n\n\nConsolidation of debt results in reduced interest expense and increased financial capacity \n\n\n\nNIAGARA-ON-THE-LAKE, ON, Oct. 2, 2017 /CNW/ - Diamond Estates Wines & Spirits Inc. (the \"Company\" or \"Diamond Estates\") (http://www.diamondestates.ca) (TSXV: DWS), today announced that the Company has entered into a new credit facilities agreement (the \"Facilities Agreement\") with Bank of Montreal (the \"Lender\"). \n\nUnder the Facilities Agreement, the Lender is providing Diamond Estates and its subsidiaries with a total of up to $30 million, including a $13.0 million revolving credit facility (the \"Revolver\") and a $10.0 million non-revolving term loan. The Agreement also provides for an additional delayed draw term loan of $2.5M, a $2.5M master lease facility and a $2.0 million accordion feature to the Revolver, exercisable by the Company subject to certain provisions. The Revolver and term loan mature in three years.\n\nThe Company retired a total of $18.5 million in revolving and term debt that was outstanding under loans from CIBC and Meridian Credit Union. The balance of the funds will be available as needed to fund capital expenditures and general corporate purposes. Diamond Estates expects the new financing to result in annualized interest savings of approximately $108,000.\n\n\"Bank of Montreal has just made a very strong show of support for Diamond Estates and our growth strategy,\" said Murray Souter, President and Chief Executive Officer. \"With the financial capacity provided by these new credit facilities, we are well positioned to continue to execute against our plan.\"\n\nAbout Diamond Estates Wines and Spirits Inc.Diamond Estates Wines and Spirits Inc. is a producer of high quality wines and a sales agent for over 120 beverage alcohol brands across Canada.  The company operates two wineries in the Niag...