TORONTO, ONTARIO--(Marketwired - July 29, 2016) - Park Lawn Corporation (TSX VENTURE:PLC) ("PLC") is pleased to announce another important milestone in its growth plan with the closing of a new bank financing arrangement with National Bank of Canada.
The financing arrangement, which has a term of five years, more than doubles PLC's borrowing capacity to $32.5 million. The additional credit will provide PLC with further flexibility as it continues to pursue its growth strategy. In particular, the revolving credit facility will support PLC's ability to capitalize on new acquisition opportunities as they arise and continue to make strategic investments in its existing group of companies while maintaining a prudent approach to leverage.
"We are pleased to be expanding our relationship with National Bank, which has long been a strong supporter of PLC's strategic vision. I am confident that this transaction will enhance our success as we continue to grow our business in both Canada and the United States," said Andrew Clark, Chairman and CEO of PLC.
Highlights of the new credit facilities include:
- $25 million committed credit facility
- Additional $7.5 million accordion facility
- Five year term with no principal until maturity
"We are pleased to provide this credit facility to PLC as it continues to execute on its growth strategy," stated Manny Deol, Director Corporate Banking at National Bank of Canada. "We have had a long-standing relationship with the management team at PLC and look forward to continuing to support them going forward."
PLC has successfully completed its initial three-year growth plan by, among other things:
- more than tripling its market cap to over $100M;
- diversifying its lines of business and service offerings; and
- expanding operations across Canada and into the United States.
Over that time, PLC has also delivered a healthy return for shareholders and a monthly dividend with an annual yield of 3 percent.
About Park Lawn Corporation
Park Lawn Corporation provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold on a pre-planned basis (pre-need) or at the time of a death (at-need). PLC and its subsidiaries own and operate 34 cemeteries in Ontario and Michigan and 22 funeral homes, chapels and planning offices in Quebec, Ontario, Manitoba and Saskatchewan. PLC's Harmonia business currently operates under license in the province of Quebec.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of PLC and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate", "pro-forma" and other similar expressions. These statements are based on PLC's expectations, estimates, forecasts and projections and include, without limitation, statements regarding PLC's increased financial flexibility, the continued pursuit of its growth strategy, its ability to capitalize on new acquisitions opportunities and strategic investments, and continued success in executing its growth plan. The forward-looking statements in this news release are based on certain assumptions, including without limitation that PLC's business will continue to perform in a manner consistent with past practice, and that the new credit facility will have a positive impact on PLC's financial position. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in PLC's annual information form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, PLC assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.