Loyalist Group Limited

Loyalist Group Limited

November 17, 2014 09:31 ET

Loyalist Announces New $18.5 Million Credit Facility

TORONTO, ONTARIO--(Marketwired - Nov. 17, 2014) - Loyalist Group Limited ("Loyalist" or the "Company") (TSX VENTURE:LOY) today announced that it has entered into a new $18.5 million credit facility, replacing the Company's current credit facility thus adding an additional $18 million of capital to support Loyalist's growth.

"The additional capital provided by the new credit facility will allow us to fund our aggressive growth and acquisition program," said Chief Executive Officer Andrew Ryu. "We believe the ability to obtain a facility of this size signifies a new phase in the maturation of Loyalist."

Mr. Ryu added that "previously we have raised equity capital to fund our acquisition plans. The credit facility will now allow us to manage our capital structure in a more efficient manner and to continue to grow without diluting our existing shareholders."

The new credit facility expires on November 17, 2019 and is comprised of a $3.5 million revolving operating facility and a $15 million term loan acquisition facility. The facilities are being provided by the Bank of Montreal. Both facilities bear interest at the Canadian Dollar Prime Rate plus 1.25% to 1.75%, depending on the Company's debt to EBITDA ratio. The acquisition facility may be drawn upon in periodic advances as required until November 17, 2016, and can be repaid at any time without penalty.

The new credit facility is secured by a first charge over all of the assets of Loyalist and its subsidiaries, contains positive, negative and financial covenants, and includes other usual and customary terms and conditions.

About Loyalist

Loyalist Group Limited owns and operates private English as a Second Language (ESL) Schools, Career Colleges and Community Colleges in Toronto, Vancouver, Victoria and Halifax.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken, "will continue", "will occur" or "will be achieved". The forward-looking information contained herein includes information relating to the terms of the Company's debt facility with Bank of Montreal and the proposed use by the Company of such facility. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results, including but not limited to: risks related to any of the Company's announced or proposed acquisitions failing to close or becoming delayed before closing; the Company 's reliance on its South Korean contract; carrying on business and activities in international jurisdiction where Canadian laws do not apply; the Company's ability to service its outstanding indebtedness and the impact of that indebtedness on the Company's ability to raise additional capital, fund operations or meet business objectives; any loss of certain key personnel; levels of student enrolment; delays in rolling out the online education programs; competition in the educational services market; and currency fluctuations.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Accordingly, readers should not place undue reliance on any forward-looking information or statements contained in this press release. The forward-looking information contained in this press release is made as of the date hereof, and the Company does not undertake to update any forward-looking information that is contained or referenced herein, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

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