Brampton Brick Limited

Brampton Brick Limited

June 29, 2009 17:11 ET

Brampton Brick Announces Completion of New $30 Million Term Financing

BRAMPTON, ONTARIO--(Marketwire - June 29, 2009) - Brampton Brick Limited (TSX:BBL.A) reported today that it has completed its previously announced new $30,000,000 long-term financing.

A portion of the proceeds of the new financing were utilized to repay a $20,000,000 term bank loan. The balance will be utilized for general corporate purposes.

The term of the loan is seven years with interest only for the first two years. Principal repayments commence in July 2011 at $500,000 per month in the months of July to November inclusive ($2,500,000 per year) to 2015, and a balloon payment of $17,500,000 in June 2016. The rate of interest is fixed at 8.00%.

The loan is secured primarily by real estate and production equipment of the Company's Masonry Products and Landscape Products business segments in both Canada and the U.S.

As previously announced in its press release of May 8, 2009, the Company was not in compliance with certain financial covenants under its bank loan agreement as at March 31, 2009. With the completion of the new term financing and the repayment of the $20,000,000 term bank loan as noted above, these financial covenants are no longer applicable.

The lender is Integrated Private Debt Corp. ("IPD"), Canada's largest independent provider of investment grade senior private debt. IPD is the private debt division of Integrated Asset Management Corp. (TSX:IAM) ("IAM"), of Toronto. IAM is Canada's leading alternative asset management company, with approximately $2.1 billion in assets and committed capital under management in private corporate debt, private equity, managed futures, real estate and retail alternative investments.

Certain statements contained herein constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including, but not limited to, those identified under "Risks and Uncertainties" in the Company's 2008 Annual Report, which may cause actual results, performance or achievements of the Company to be materially different from any future result, performance or achievements expressed or implied by such forward-looking statements.

Brampton Brick is Canada's second largest manufacturer of clay brick and manufactures concrete paving stones, retaining walls, garden walls and enviro products in Canada and the U.S. under the Oaks Concrete Products trade name. The Company also manufactures a range of concrete masonry products including stone veneer, window sills and concrete brick. Products are used for residential construction and for industrial, commercial, and institutional building projects. Da Vinci Stone Craft Ltd., a wholly owned subsidiary, manufactures fireplace surrounds and accessory products. The Company also holds a 50% joint-venture interest in Universal Resource Recovery Inc., which operates a waste composting facility in Welland, Ontario.

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