Chesswood Group Limited
TSX : CHW

Chesswood Group Limited

December 09, 2014 07:30 ET

Chesswood Announces New US$150 Million Corporate Credit Facility

Senior Facility Expands Access to Capital and Replaces Pawnee Facility

TORONTO, ONTARIO--(Marketwired - Dec. 9, 2014) - Chesswood Group Limited ("Chesswood") (TSX:CHW) announced today that it has entered into a new three year, US$150 million, revolving senior secured credit facility. The facility also includes a US$50 million accordion feature which would expand the facility to US$200 million, if exercised.

The new credit facility will support growth in finance receivables, provide for Chesswood's working capital needs and for general corporate purposes. This new corporate credit facility replaces the US$105 million revolving credit facility of Pawnee Leasing, and allows Chesswood to manage the allocation of capital to its various financial services businesses in Canada and the U.S., internally. Chesswood used approximately US$94.0 million of its availability under this new credit facility to repay and retire the Pawnee Leasing credit facility.

"The additional liquidity from our expanded facility provides us with greater capacity, in support of our multiple growth initiatives," stated Barry Shafran, Chesswood's President. "This new facility, available in U.S. or Canadian dollars, also improves our financial flexibility by centralizing treasury management and making the provision of capital to individual businesses far easier", added Shafran.

The credit facility is led by Royal Bank of Canada and includes a syndicate of leading Canadian and U.S. financial institutions, including BBVA Compass as syndication agent.

About Chesswood Group Limited

Chesswood Group Limited is a financial services company with operating businesses in both Canada and the U.S.

To learn more about Chesswood Group Limited, visit www.ChesswoodGroup.com.

The separate websites of Chesswood Group Limited's operating businesses are at www.PawneeLeasing.com, www.WindsetCapital.com, www.nstarleasing.com, www.CaseFunding.com, and www.AcuraSherway.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.

NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

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