TORONTO, ONTARIO--(Marketwired - Nov. 30, 2016) - Chesswood Group Limited (the "Company" or "Chesswood") (TSX:CHW) announced today it has expanded and renewed its corporate revolving credit facility for a term of three years, expiring in December 2019. The existing US$150 million credit facility was due to mature in December 2017. The credit facility has been increased to US$170 million and now includes a US$80 million accordion feature (an increase of US$30 million from the current accordion of US$50 million), which would expand the facility to US$250 million, if exercised.
"We're very pleased that the Company's syndicate of lenders have once again demonstrated their support of our team and the growth of our businesses by renewing and expanding our credit facility for another three years," said Chesswood's President and CEO Barry Shafran. "We're also pleased that our lending syndicate continues to be comprised of leading Canadian and U.S. banks," added Shafran.
The Company has drawn US$140 million under its credit facility as of the end of November. Chesswood's overall leverage remains modest following the sale of its two non-commercial finance businesses over the last year and the subsequent pay-down of this credit facility with a majority of the proceeds. The Company has a very strong balance sheet that is well positioned to support its portfolio growth while continuing to provide shareholders with an attractive yield, paid through monthly dividends.
The syndicate of six banks was once again led by Royal Bank of Canada and includes BBVA Compass, Bank of Montreal, National Bank of Canada, TD Securities and Laurentian Bank of Canada.
About Chesswood Group Limited
Chesswood operates in the financial services industry, with equipment finance businesses in both Canada and the U.S. To learn more about Chesswood, visit www.chesswoodgroup.com.
The separate websites of Chesswood Group Limited's operating businesses are at www.PawneeLeasing.com and www.BlueChipLeasing.com.
This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
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