Business
Allen-Vanguard closes new credit facilities led by RBC Capital Markets
- Three-year $200 million term loan and $50 million revolver to replace existing senior debt - Su...
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n- Three-year $200 million term loan and $50 million revolver to replace\n existing senior debt\n- Substantially reduced debt service requirements\n\n\nOTTAWA, May 7 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company" or\n"Allen-Vanguard") (TSX: VRS) of Ottawa, Canada today announced that it has\nentered into secured credit facilities underwritten by RBC Capital Markets\n("RBC"), consisting of a three-year $200 million term loan facility ("Term\nLoan") and a $50 million revolving credit line ("Revolver"). The interest\nrates on the Term Loan and Revolver are substantially lower than the interest\nrates on the senior debt replaced by this new facility. The Term Loan will be\nrepayable in quarterly principal payments of $10 million, plus additional\nquarterly payments ranging from 50% to 75% of excess cash flow, with any\nremaining principal repayable upon the maturity date of the Term Loan. Unless\nindicated otherwise, all amounts are in Canadian dollars.\n\n\nThe Company has used approximately $195.5 million of the Term Loan to\nrepay the outstanding balance on its existing senior debt facilities, plus the\naccrued interest due thereon, the applicable prepayment fees, underwriting and\ntransaction fees.\n\n\n"After a year of transformative acquisition activity and a period of\nrapid debt reduction to de-leverage the company, we are pleased to achieve a\nmanageable level of debt and put in place new financing on very attractive\nterms," said David E. Luxton, President and CEO. "The new credit facilities\nsignificantly lower our debt service requirements and give us more flexibility\nto pursue growth opportunities."\n\n\nForward looking statements\n\n\nThis press release may contain forward-looking statements, which reflect\nAllen-Vanguard's current expectations regarding future events, its strategy,\nexpected performance and condition. Forward-looking statements include\nstatements that are predictive in nature, that depend upon or refer to future\nevents or conditions, or that include words such as "expects," "anticipates,"\n"plans," "believes," "estimates" or negative versions thereof and similar\nexpressions. In addition, any statement that may be made concerning future\nperformance, strategies or...