TORONTO, June 30 /CNW/ - Davis + Henderson Income Fund (TSX: DHF.UN) ("Davis + Henderson" or the "Fund") today announced that the business has amended and extended its credit agreement with a syndicate of Canadian banks. The maturity date of these amended credit facilities is June 30, 2013 and provides for total credit of $220 million consisting of a $130 million non-revolving term loan and a $90 million revolving credit facility. The terms and conditions of these arrangements are substantially similar to Davis + Henderson's prior credit arrangements. A copy of the fifth amended and restated credit agreement dated June 30, 2010 will be available on SEDAR at www.sedar.com.
Concurrent with the amended credit agreement, the business issued C$50 million of 5.99% fixed-rate notes, with a maturity date of June 30, 2017, that rank equally in all material respects with the obligations under the new credit agreement. These notes were issued in Canadian dollars and were provided by two institutional lenders. A copy of the note purchase agreement dated June 30, 2010 will be available on SEDAR at www.sedar.com.
Brian Kyle, Chief Financial Officer of Davis + Henderson said "We are pleased to renew our bank credit facilities and to put in place some longer term financing. With these new arrangements we are well positioned financially to support the continued growth of the business."
ABOUT DAVIS + HENDERSON
Davis + Henderson is a leading solutions provider to the financial services marketplace. Founded in 1875, the company today provides innovative programs, technology products and technology based services to customers who offer chequing accounts, credit card accounts and personal, commercial, and other lending and leasing products. Davis + Henderson Income Fund is listed on the Toronto Stock Exchange under the symbol DHF.UN. Further information can be found in the disclosure documents filed by Davis + Henderson Income Fund with the securities regulatory authorities, available at www.sedar.com.
Caution Concerning Forward-looking Statements
This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Statements concerning Davis + Henderson's objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of Davis + Henderson are forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions, including the following specific assumptions: the ability of Davis + Henderson to meet its revenue and EBITDA targets; general industry and economic conditions; changes in Davis + Henderson's relationship with its customers and suppliers; pricing pressures and other competitive factors. Davis + Henderson has also made certain macroeconomic and general industry assumptions in the preparation of such forward-looking statements. While Davis + Henderson considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Business, or developments in Davis + Henderson's industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Risks related to forward-looking statements include, among other things, challenges presented by declines in the use of cheques by consumers; the Fund's dependence on a limited number of large financial institution customers and dependence on their acceptance of new programs; strategic initiatives being undertaken to meet the Fund's financial objective; stability and growth in the real estate and mortgage markets; as well as general market conditions, including economic and interest rate dynamics and investor interest in, and government regulations relating to, Income Trusts. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Davis + Henderson does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change except as required by applicable securities laws.
SOURCE DH Corporation
For further information: For further information: Davis + Henderson Income Fund, Brian Kyle, Executive Vice President and Chief Financial Officer, Davis + Henderson, Limited Partnership, 416-696-7700, Website: www.dhltd.com