Two new agreements provide greater financial and operational
flexibility
BOUCHERVILLE,
QC, Feb. 3, 2014 /CNW Telbec/
- Colabor Group Inc. (TSX: GCL) ("Colabor" or the "Corporation")
today announced that it has entered into two agreements for the
refinancing of its credit facilities, agreements that will provide
the Corporation with greater financial flexibility and an enhanced
ability to manoeuvre in its business model.
First, a banking syndicate led by BMO Bank of
Montreal has granted a credit
facility of a maximum amount of $140
million for a term of three years. This facility includes an
accordion clause providing for a $30-million increase in the authorized amount,
subject to certain conditions. The Corporation has also been
granted term credit facilities totalling $18
million that may be used for specific purposes, repayable
over a term of 24 months commencing at the time of their use.
Second, the Corporation has entered into a loan
agreement for a total capital amount of $42.5 million, of which $15 million will be used to repay a loan taken
out by the Corporation in December
2011 and the balance will be employed as working
capital.
To secure each of these credit facilities, the
Corporation, its subsidiaries and related entities have granted
mortgages on the entirety of their assets in favour of each of
these lending groups.
"This refinancing will allow Colabor to
proactively pursue its initiatives to accelerate its growth and
organizational development. We believe the new credit agreements
will improve our flexibility in current operations at no additional
cost to the Corporation," said Claude Gariépy, President and Chief
Executive Officer of Colabor.
The Corporation expects to incur additional
financial expenses of approximately $1.0
million in the fourth quarter of 2013. These additional
expenses are attributable to the writeoff of expenses related to
the Corporation's former credit agreement and also include an
amount paid as interest on the balance of the sale price related to
the acquisition of Bertrand,
following a Superior Court decision. This decision will also entail
a non-material correction of the Corporation's financial expenses
and overall results for fiscal years 2009 through 2012 in
connection with an accounting error.
FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements reflecting
the opinions or current expectations of Colabor Group Inc.
concerning its performance and business operations and future
events. These statements are subject to risks, uncertainties and
assumptions. Actual results or events may differ.
ABOUT COLABOR
Colabor is a wholesaler and distributor of food and non-food
products serving the foodservice (cafeterias, restaurants, hotels,
restaurant chains, etc.) and retail (grocery stores, convenience
stores, etc.) markets in Quebec,
Ontario and the Atlantic
provinces.
SOURCE Colabor