CHESSWOOD EXERCISES ADDITIONAL ACCORDION FUNDS UNDER CREDIT FACILITY
Borrowings Support Continued Growth in Pawnee Leasing Portfolio
TORONTO, August 29, 2017 – Chesswood Group Limited (TSX: CHW) (“Chesswood” or the “Company”) announced today that it has exercised the remaining US$50 million accordion feature in its existing corporate revolving credit facility, increasing the facility to US$250 million.
The facility matures in December 2019 and Chesswood has drawn US$188million under the facility as of the August 29, 2017. “Our U.S. prime portfolio continues to grow as expected. At the same time we have been working towards our first U.S. non-recourse asset backed facility for this portfolio segment,” said Barry Shafran, Chesswood’s President and CEO. “The new non-recourse facility, expected to close in late September or early October, will further diversify our treasury and match our funding structures with our portfolio composition,” added Mr. Shafran.
Chesswood’s overall leverage remains modest following the sale of its two non-core finance businesses over the last eighteen months and the subsequent pay-down of its credit facility with the majority of the proceeds. The Company is well positioned to support its portfolio growth while continuing to provide shareholders with an attractive yield.
The Company’s syndicate of six banks is led by Royal Bank of Canada and includes BBVA Compass, Bank of Montreal, National Bank of Canada, TD Securities and Laurentian Bank of Canada.
“Our lenders have continued to provide strong support for our growth efforts in both the U.S. and Canada. We’re grateful for that partnership and the vote of confidence it represents,” said Mr. Shafran.
About Chesswood Group Limited
Through two wholly-owned subsidiaries in the U.S. and Canada, Chesswood Group Limited 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, our subsidiary 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 TSX 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
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Chesswood Group Limited
This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. Additional information about the risks and uncertainties of the Company’s businesses and material factors or assumptions on which information contained in forward-looking statements is based is provided in its publicly filed documents, including the Company’s annual information form and management’s discussion and analysis of the financial condition and performance, which are available electronically through the System for Electronic Document Analysis and Retrieval at www.sedar.com.
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