RUM Reduces Long Term Debt

RUM Reduces Long Term Debt

Edmonton, Alberta CANADA, November 25, 2011 /FSC/ - Rocky Mountain Liquor Inc. (RUM - TSX Venture)("Rocky Mountain" or the "Company"), listed on the TSX Venture Exchange (the "Exchange"), today reported its subsidiary Andersons Liquor Inc. ("Andersons") has paid off its$3 million in Sub-Debt Financing to its lender.

The Company has voluntarily paid off its Sub-Debt Financing in full.  In addition to a reduction in interest, based on a 9.9% per annum rate, quarterly savings of $15,000 in fees for a remaining 12 quarterly periods to the maturity date of the Sub-Debt facility will also be realized.

One time make-whole fees are required to retire the Sub-Debt facility. A one time penalty plus the Net Present Value of all future fees for a total one-time payment of $265,614 was paid on November 25, 2011.

The Company has also requested that its total senior bank facility of $25 million be decreased to $20 million to reduce commitment fees associated with these facilities. This will shrink commitment fees in Q4 and fiscal 2012.

Repayment of the Sub-Debt Financing and a reduction of its senior bank facility leaves the Company with access to $20 million, divided between an Operating Line of Credit and Acquisition Facility.  Current utilization of the acquisition facility is $4.5 million, resulting in $15.5 million availability, which is sufficient for the Company to execute its growth strategy.  


About Rocky Mountain Liquor:

Rocky Mountain Liquor owns 100% of Andersons Liquor Inc. ("Andersons") headquartered in Edmonton Alberta, which owns and operates 39 private liquor stores in that province.  

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the future growth and priorities for the Company, and the ability to execute the business strategy. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that these events may not materialize as well as those additional factors discussed in the section entitled "Risk Factors" in Rocky Mountain's Management Discussion and Analysis, which can be obtained at www.sedar.com. If they do materialize, there remains a risk of non-execution for any reason (including but not limited to the inability to locate suitable acquisitions or new store development locations).


For further information:

Peter J. Byrne
Chief Executive Officer
(780) 686-7383

Sarah Stelmack
Chief Financial Officer
(780) 863-2326



To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/rocky11252011.htm  



Source: Rocky Mountain Liquor Inc. (TSX-V RUM)
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