EDMONTON, AB, March 26, 2024 /CNW/ - K-Bro Linen Inc.
("K-Bro" or the "Corporation") (TSX: KBL) today
announced that it has entered into a three-year, $175 million committed, syndicated revolving
credit facility (the "Credit Facility"). The Toronto-Dominion Bank
("TD") is acting as lead arranger, sole bookrunner, and
administrative agent, with National Bank of Canada and Canadian Western Bank as lenders
(together with TD, the "Lenders"). The Credit Facility replaces
K-Bro's existing $125 million
revolving credit facility with TD.
Under the terms of the Credit Facility, the Lenders will provide
K-Bro with a $175 million committed
revolving credit facility, inclusive of a $15 million swingline. There is also an
additional uncommitted accordion for up to $75 million. The Credit Facility matures on
March 26, 2027.
"We are pleased to announce our new upsized syndicated Credit
Facility with TD and the other syndicate lenders, which will
provide us with further financial flexibility to pursue our organic
growth and potential M&A opportunities." said Linda McCurdy, President and Chief Executive
Officer at K-Bro. "Strategic acquisitions of high-quality
operators continue to be an important contributor to K-Bro's
overall growth profile. We have an active M&A pipeline
and remain well positioned from a balance sheet and liquidity
perspective and will continue to be disciplined as we evaluate
acquisitions."
CORPORATE PROFILE
K-Bro is the largest owner and operator of laundry and linen
processing facilities in Canada
and a market leader for laundry and textile rental services in
Scotland and the North of
England. K‑Bro and its
wholly-owned subsidiaries operate across Canada and the UK, providing a range of linen
services to healthcare institutions, hotels and other commercial
accounts that include the processing, management and distribution
of general linen and operating room linen.
The Corporation's operations in Canada include ten processing facilities and
two distribution centres under two distinctive brands:
K‑Bro Linen Systems Inc. and Buanderie HMR. The Corporation
operates in ten Canadian cities: Québec City, Montréal,
Toronto, Regina, Saskatoon, Prince
Albert, Edmonton,
Calgary, Vancouver and Victoria.
The Corporation's operations in the UK include Fishers, which
was acquired by K‑Bro on November 27,
2017. Fishers was established in 1900 and is a leading
operator of laundry and linen processing facilities in Scotland, providing linen rental, workwear
hire and cleanroom garment services to the hospitality, healthcare,
manufacturing and pharmaceutical sectors. The Corporation operates
five UK sites located in Cupar,
Perth, Newcastle, Livingston and Coatbridge.
Additional information regarding the Corporation including
required securities filings are available on our website at
www.k-brolinen.com and on the Canadian Securities Administrators'
website at www.sedarplus.ca; the System for Electronic Document
Analysis and Retrieval ("SEDAR").
K-Bro est le plus important propriétaire et exploitant de
buanderies au Canada. K-Bro
fournit une gamme étendue de services de buanderie aux
établissements de soins de santé, hôtels et autres clients
commerciaux. K-Bro exploite actuellement dix usines et deux centres
de distribution sous deux entités distinctes, incluant K-Bro Linen
Systems Inc. et Buanderie HMR, dans dix villes canadiennes: Québec,
Montréal, Toronto, Regina, Saskatoon, Prince
Albert, Edmonton,
Calgary, Vancouver et Victoria.
Vous pouvez obtenir des renseignements supplémentaires sur la
Société, y compris les documents déposés auprès des autorités de
réglementation, sur notre site Web, au www.k-brolinen.com et sur le
site Web des autorités canadiennes en valeurs mobilières au
www.sedar.com, via le Système électronique de données, d'analyse et
de recherche (« SEDAR »).
FORWARD LOOKING STATEMENTS
This news release contains forward-looking information that
represents internal expectations, estimates or beliefs concerning,
among other things, future activities or future operating results
and various components thereof. The use of any of the words
"anticipate", "continue", "expect", "may", "will", "project",
"should", "believe", and similar expressions suggesting future
outcomes or events are intended to identify forward-looking
information. Statements regarding such forward-looking
information reflect management's current beliefs and are based on
information currently available to management.
These statements are not guarantees of future performance and
are based on management's estimates and assumptions that are
subject to risks and uncertainties, which could cause K-Bro's
actual performance and financial results in future periods to
differ materially from the forward-looking information contained in
this news release. These risks and uncertainties include,
among other things: (i) risks associated with acquisitions,
including the possibility of undisclosed material liabilities; (ii)
K-Bro's competitive environment; (iii) utility costs, minimum wage
legislation and labour costs; (iv) K-Bro's dependence on long-term
contracts with the associated renewal risk; (v) increased capital
expenditure requirements; (vi) reliance on key personnel; (vii)
changing trends in government outsourcing; (viii) changes or
proposed changes to minimum wage laws in Ontario, British
Columbia, Alberta, and the
United Kingdom, which could have
an adverse effect on expenses in respect of employees situated in
those jurisdictions. While a portion of such expenses may be passed
on to or be recoverable from customers, there can be no assurances
that that will occur and (viii) the availability of future
financing. Material factors or assumptions that were applied in
drawing a conclusion or making an estimate set out in the
forward-looking information include: (i) volumes and pricing
assumptions; (ii) expected impact of labour cost initiatives; and
(iii) frequency of one-time costs impacting quarterly and annual
financial results; and (iv) the level of capital expenditures.
Although the forward-looking information contained in this news
release is based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be
consistent with these forward-looking statements. Certain
statements regarding forward-looking information included in this
news release may be considered "financial outlook" for purposes of
applicable securities laws, and such financial outlook may not be
appropriate for purposes other than this news release. Forward
looking information included in this news release includes, without
limitation, the terms of the Credit Facility.
All forward-looking information in this news release is
qualified by these cautionary statements. Forward-looking
information in this news release is presented only as of the date
made. Except as required by law, the Corporation disclaims any
intention or obligation to update or revise any forward-looking
statements to reflect subsequent events or circumstances.
SOURCE K-Bro Linen Inc.