Business
FP Newspapers Inc. Announces Amendment of Term Loan and Non-Revolving Credit Facility
WINNIPEG, MB / ACCESSWIRE / July 11, 2022 / FP Newspapers Inc. (" FPI " or the " Company ") ...
About this update from Fp Newspapers Inc.
[{"type":"text","content":"FP Newspapers Inc. Announces Amendment of Term Loan and Non-Revolving Credit FacilityWINNIPEG, MB / ACCESSWIRE / July 11, 2022 / FP Newspapers Inc. (\"FPI\" or the \"Company\") (TSXV:FP) is pleased to announce that FP Canadian Newspapers Limited Partnership (\"FPLP\") has entered into an amended and restated facility letter (the \"Restated Facility Letter\") whereby its existing facility letter dated January 21, 2020 with HSBC Bank Canada (the \"Original Facility Letter\") was amended. In connection with the Restated Facility Letter, HSBC Bank Canada has provided the Company with a credit facility of up to $15,585,000 (the \"Credit Facility\").Under the terms of the Restated Facility Letter, the Credit Facility will mature on July 6, 2026 being four years from the date of the initial advance (the \"Term\") and bears a variable rate of interest at HSBC Bank Canada prime rate of interest per annum, plus a premium based on financial leverage as defined by HSBC Bank Canada. FPLP is obligated to make monthly installment payments of accrued interest payable on the principal outstanding until January 30, 2023 and repay $188,700 per month along with all accompanying interest for the remainder of the Term. The Restated Facility Letter contains substantially the same representations, warranties, covenants, events of default and financial covenants as the Original Facility Letter. The Credit Facility is secured by the assets of the businesses and a mortgage registered on FPLP's Winnipeg land and buildings, as provided for under the Original Facility Letter.\"HSBC Bank Canada has been a long-term supporter and valued business partner to the Company since they initially provided a $60.0 million loan facility over a decade ago,\" said Robert Silver, Chief Executive Officer, Chairman and President of FPI. \"2022 marks the 150th anniversary of the first publication of the Winnipeg Free Press and whilst news media as a whole faces evolving challenges, it plays a renewed and essential role in our society. The Company is making continued progress on FPLP's debt repayments, in no small part through the hard work of its dedicated employees.\"The proceeds from the Restated Facility Letter are to be used to re-finance its current indebtedness and to finance the acquisition of planned equipment purchases.FPLP owns and operates the Winnipeg Free Press, ...