Business
Lassonde Industries obtains additional $15 million financing in connection with its acquisition of Clement Pappas and Company
ROUGEMONT, QC, Oct. 26, 2011 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) ("Lass...
About this update from Lassonde Industries, Inc. Class A
[{"type":"text","content":"\n\n\n\n\n\nROUGEMONT, QC, Oct. 26, 2011 /CNW Telbec/ - Lassonde Industries Inc.\n (TSX: LAS.A) (\"Lassonde\") announces that is has obtained $15 million in\n additional financing related to its acquisition of Clement Pappas and\n Company, Inc. completed on August 12, 2011. The unsecured financing was\n provided by two Canadian financial institutions to a subsidiary of the\n Company and includes a $5 million participating loan and a $10 million\n conventional loan at an interest rate of 8.5%. The proceeds of these\n loans will be used to reduce the Company's operating debt.\n\n\nThe conventional loan has a term of 7 years with repayment of principal\n starting in 2015. The participating loan is tied to the performance of\n Clement Pappas and is repayable at the option of the lenders after 3\n years, or at the option of the Company after 7 years. The amount\n repayable as principal of the participating loan is equal to 3% of 6.5\n times the EBITDA of Clement Pappas for the four quarters preceding\n repayment, minus funded indebtedness. For the 12-month period ended\n August 10, 2011, EBITDA of Clement Pappas was approximately\n USD$59 million. If demand for repayment of the participating loan is\n made by the lenders and could cause the Company to be in default on its\n other borrowings, the Company will have the option of repaying the\n participating loan through the issuance to the lenders of Class A\n subordinate voting shares at 95% of the market price at that time.\n\n\nAbout Lassonde Industries Inc.\n\n\nLassonde Industries Inc. is a North American leader in the development,\n manufacture and sale of innovative and distinctive lines of fruit and\n vegetable juices and drinks marketed under recognized brands such as\n Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont.\n\n\nLassonde markets specialty food products such as fondue broths and\n sauces, cheese and chocolate fondues, soups, gravies, and sauces for\n pasta and pizza under recognized trademarks such as Antico and Canton.\n The Company also imports and markets selected wines from various\n countries of origin, and manufactures apple ciders and wine-based\n beverages.\n\n\nSubsidiaries include Clement Pappas and Company, Inc., headquartered in\n New Jersey, which is the second-largest producer of store brand\n read...