LIQUOR STORES NA LTD 4.70 PCT DEBS T.LIQ.DB.B

NEWS: Liquor Stores exiting the lower 48 U.S. states

[BSdetector2016]

Sales of U.S. assets will place focus directly on core Alberta, B.C. and Alaska markets. November 20, 2017 07:30 ET | Source: Liquor Stores N.A. Ltd. EDMONTON, Alberta, Nov. 20, 2017 (GLOBE NEWSWIRE) -- Liquor Stores N.A. Ltd. (the Company or Liquor Stores) (TSX:LIQ) today announced that it has acted on the strategy endorsed by shareholders in June of refocussing on its core markets of Alberta, B.C. and Alaska by selling its 15 Liquor Barn retail stores in the state of Kentucky and entering into negotiations for the sale of its 51% interest in Birchfield Ventures LLC (Birchfield) which owns two stores in New Jersey. The completion of both of these transactions will result in the reduction of the Companys long-term debt levels by up to $47 million (US$ 37 million), along with extinguishing its obligation to purchase the remaining 49% interest in Birchfield as early as January 1, 2019, currently valued at $12.4 million. As a result of these transactions, the Company will also not need to fund the significant renovation costs that these stores would have required. The Company is also currently in discussions with a third party about the sale of its store in Norwalk, Connecticut (the Connecticut transaction). Liquor Stores will also close its U.S. head office and will no longer have any U.S.-based executives or senior management. The operating and administrative expenses saved from these initiatives are expected to nearly offset the net cash flow contributions of the above-mentioned U.S. assets based on the Companys projections for these businesses. These transactions are strong indicators of the Board and managements determination to implement the strategic plan which our shareholders endorsed in June by electing six new directors, said Board Chair Derek H. Burney. Director James Burns has spearheaded the negotiating and closing of these transactions as well as the other initiatives to create shareholder value as Chair of the Special Committee on Business Transformation. The speed at which our objectives have been accomplished is a testament to Mr. Burns full-time efforts on behalf of the Company since the Board changes. I would also like to commend Director Peter Lynch for his efforts working with Mr. Burns.