Acasta Enterprises Inc. (TSX: AEF) ("Acasta" or the "Company")
announced today that it has completed the previously announced sale (the
"Transaction") of JemPak Corporation to a wholly-owned subsidiary
of Henkel AG & Co. KGaA.
"With the closing of this Transaction, Acasta has been able to
significantly reduce its indebtedness and reduce the associated cost of
borrowing on its remaining indebtedness," commented Ian Kidson, Interim
Chief Executive of the Company. "We would like to thank our lenders for
their constructive dialogue with us and assistance in implementing the
closing of the Transaction."
The net proceeds from the Transaction of approximately $115 million were
used primarily to pay down Acasta's indebtedness. Acasta has repaid
approximately $77.3 million (U.S.$59 million) under its U.S.$150 million
credit facility leaving only approximately U.S.$10 million in
indebtedness to WFI Inc., an entity controlled by Charles and Richard
Wachsberg.
In addition, Acasta has entered into an amending agreement with Canadian
Imperial Bank of Commerce whereby it remains as the only lender to
Apollo Health and Beauty Care Inc. ("Apollo") in the amount of
approximately $58 million which is secured by a first ranking charge
over all property of Apollo as well as a pledge of all equity interests
and indebtedness of Apollo held by Acasta. As of the date hereof, the
Company's aggregate indebtedness is approximately $74 million.
Canaccord Genuity Corp. served as financial advisor and Goodmans LLP
acted as legal counsel to Acasta, respectively.
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SOURCE: Acasta Enterprises Inc.
Acasta Enterprises Inc. Ian Kidson, 1-647-725-6707 Interim Chief Executive Officer www.acastaenterprises.com
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