TORONTO, Dec. 12, 2017 /CNW/ - Chesswood Group Limited
(the "Company" or "Chesswood") (TSX:CHW) announced today that it
has renewed its US$250 million
corporate revolving credit facility for a term of three years,
expiring in December 2020. The existing credit facility was
due to expire in December 2019. Chesswood also announced that
it will redeem all $20 million of its
outstanding 6.5% convertible debentures (the "Debentures") in
January 2018, well ahead of their
maturity date of December 31,
2018.
"We're very pleased that our syndicate of lenders has once again
demonstrated their support of our team and the growth of our
businesses by this early renewal of our credit facility for another
three years," said Chesswood's President and CEO, Barry Shafran. "Our bankers have also reflected
that support in consenting to the use of our revolving credit
facility to redeem our debentures almost a year before they would
mature, providing us with pre-tax interest savings of approximately
$400,000 in 2018," added Shafran.
The Company had drawn US$148.5
million under its credit facility as of the end of November.
Chesswood's overall leverage remains modest, reflecting a strong
balance sheet well positioned for portfolio growth.
"We're also thankful that our lending syndicate continues to be
comprised of leading Canadian and U.S. banks," added Shafran. The
syndicate of six banks was once again led by Royal Bank of
Canada and includes BBVA Compass
Bank, BMO Harris Bank, TD Securities, National Bank of Canada and Laurentian Bank of Canada.
Chesswood will exercise its right to early redemption of all the
Debentures. The redemption will be effective January 17, 2018. Upon redemption, Chesswood will
pay to the holders of the Debentures a redemption price equal
to the outstanding principal amount together with all accrued and
unpaid interest up to but excluding the redemption date.
About Chesswood Group Limited
Through our two wholly-owned subsidiaries in the U.S. and
Canada, Chesswood is North America's only publicly-traded
commercial equipment finance company focused on small and
medium-sized businesses. Our Colorado-based Pawnee Leasing Corporation,
founded in 1982, finances a highly diversified portfolio of
commercial equipment leases and loans through established
relationships with over 600 independent brokers in the lower 48
states. In Canada, Blue Chip Leasing Corporation has been
originating and servicing commercial equipment leases and loans
since 1996, and today operates through a nationwide network of more
than 50 independent brokers.
Based in Toronto, Canada,
Chesswood's shares trade on the Toronto Stock Exchange under the
symbol CHW (convertible debentures: CHW.DB).
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 and www.BlueChipLeasing.com
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY
AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED
HEREIN.
SOURCE Chesswood Group Limited