May 8, 2009 (Filing Services Canada) -- Humber Capital Corporation (RUM - TSX Venture), ("Humber" or the "Company"), listed on the TSX Venture Exchange (the "Exchange"), today reported its subsidiary Andersons Liquor Inc. ("Andersons") has secured increased financing from its senior lender The Toronto-Dominion Bank ("Senior Secured Lender").
The new non-syndicated facilities increases Senior Secured Lender commitments for Andersons and more than doubles availability from approximately $7 million to $15 million
"We realize that credit is tight in Canada due to economic conditions, commodity pricing, and financial market challenges. The newly approved, committed financing, at this time is a real signal of the bank's confidence in our past performance, as well as it underscores the strength in our business model and growth strategy," said Peter Byrne, CEO.
The credit facilities can be used for general corporate purposes including investment buys on inventory, acquisition of liquor stores, and new store "green-field" developments. "We intend to use the $8 million in new availability to increase the number of liquor store locations," noted Tracey Bean, CFO.
Mr. Bean further explained the terms of the secured revolving credit facilities. "The entire $15 million is committed for 364 days with Bankers Acceptance based pricing plus a spread ranging from 2.0 percent to 3.0 percent depending on the Company's performance". The $5.5 million of that was previously hedged for 5 years will continue to be hedged under the current commitment at the rate of 2.14% plus the appropriate credit spread."
Mr. Bean added that Humber has provided a corporate guarantee and general security agreement to support these credit facilities for Andersons.
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 Humber's Management Discussion and Analysis, which can be obtained at www.sedar.com. If they do materialize, there remains a risk of nonexecution for any reason (including but not limited to the inability to locate suitable acquisitions or new store development locations).
For further information:
Tracey Bean Peter Byrne
CFO CEO
(780) 683-2326 (780) 686-7383
Source: Humber Capital Corporation (TSX-V RUM)
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