Business
Allen-Vanguard announces new credit terms and audited financial results for fiscal 2008
- New terms of lending agreement stabilize credit facilities, defer approximately US$44 million o...
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n- New terms of lending agreement stabilize credit facilities, defer\n approximately US$44 million of principal repayments\n- Lending facilities include fully advanced term loan of US$184 million,\n existing US$7.6 operating facility, which is currently fully drawn, and\n C$4 million letter of credit facility, and a new operating facility\n totaling C$16 million as well as an additional C$4.5 million letter of\n credit facility\n- Lenders to obtain five-year warrants to acquire equity stake with\n ownership amount tied to debt reduction\n- Fourth quarter revenue growth results in fiscal 2008 revenue of\n C$309 million and EBITDA of C$51 million. Net loss for year of\n C$436 million includes non-cash charges for impairment of goodwill and\n other acquisition and amortization charges totaling C$527 million\n- Investor call scheduled for 8:30am December 30, 2008\n\n\nOTTAWA, Dec. 29 /CNW Telbec/ - Allen-Vanguard Corporation (TSX: VRS)\n("Allen-Vanguard" or the "Company") of Ottawa, Canada today announced that it\nhas agreed to new credit terms ("New Credit Terms") with its lending syndicate\n("Lenders") that re-sets financial covenants, defers approximately US$44\nmillion of principal repayments and provides the Company with new facilities\nproviding C$16 million in credit and C$4.5 million of letters of credit, both\nof which are for working capital. Closing is expected to occur by December 31,\n2008, and is subject only to final completion of pending formal documentation.\nPursuant to the New Credit Terms, certain Lenders will, upon execution of the\ndefinitive documentation giving effect to the New Credit Terms, be issued\nfive-year warrants giving them the right to acquire 19.9% of the Common Shares\nin Allen-Vanguard, and may on April 30, 2009 be issued additional warrants or\nreceive a share appreciation right, all as outlined below, if the Lenders have\nnot permanently been repaid at least US$50 million by April 30, 2009.\nAllen-Vanguard also reported its results for the fourth quarter and fiscal\nyear ended September 30, 2008 and filed its MD&A for the period. All figures\nare in Canadian dollars unless otherwise noted.\n\n\n"With the announcement today of the terms of our new lending\narrangements, we have stabilized our credit facilities, with a strong\nincentive to ...