quietly moving up
EDMONTON, ALBERTA--(Marketwired - Aug 31, 2016) - Liquor Stores N.A. Ltd. (the "Corporation" or "Liquor Stores") (TSX:LIQ) announced today that the Corporation and its syndicated group of lenders have agreed to renew and amend the existing credit facility(1).
There were no changes to the pricing grid under which fees and interest fluctuate based on the Corporation's funded debt to EBITDA ratio(2). Amendments to the existing credit facility include:
The extension of the maturity date from September 30, 2017 to September 30, 2019;
An increase in the total size of the credit facility to $CAD 165 million plus $USD 15 million (previously $CAD 170 million plus $USD 5 million);
The addition to the syndicated group of lenders of HSBC Bank USA, N.A., which will facilitate a more efficient cash management and borrowing structure for our U.S. operations; and
An increase in the fixed charge coverage ratio2 covenant of greater than or equal to 1.05:1.00 commencing April 1, 2017 (from 1.00:1.00). The remaining financial covenants were unchanged.
The additional borrowing capacity in the U.S. will be used to fund new store construction and renovations.