Chesswood Group Limited
TSX : CHW

Chesswood Group Limited

July 25, 2012 08:34 ET

Chesswood Group Limited Announces Renewal and Expansion of Pawnee Credit Facility

TORONTO, ONTARIO--(Marketwire - July 25, 2012) - Chesswood Group Limited ("Chesswood") (TSX:CHW) announced today that Pawnee Leasing Corporation ("Pawnee"), Chesswood's largest operating business, renewed and expanded its credit facility, for a term of four years, expiring in July 2016. The existing credit facility was due to mature in September 2013.

"Pawnee's lenders have once again demonstrated their support of our growth by renewing and expanding Pawnee's credit facility for another four years" said Chesswood's President and CEO, Barry Shafran. "Our credit facility has been increased once again, to US$85 million from US$55 million while the accordion feature of our loan agreement has been increased to US$115 million from US$85 million" added Shafran.

Chesswood has once again contributed an additional US$2.0 million of capital to Pawnee, in conjunction with the renewal, to further support Pawnee's continued growth. Pawnee's portfolio has grown by more than 30% since the last renewal of its banking agreement in September 2010.

Pawnee's syndicate, once again led by JPMorgan Chase, also includes KeyBank and BBVA Compass. The terms and conditions of the renewal facility are substantially similar to the last credit agreement.

About Chesswood Group Limited

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

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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