TORONTO, Oct. 12 /CNW/ - EGI Financial Holdings Inc. (TSX: EFH) today
announced that it has entered into a non-revolving term credit facility with
The Bank of Nova Scotia ("Scotiabank") in the amount of US$20 million (or the
equivalent amount in Canadian dollars determined as of the closing date).
The aggregate commitments under the Scotiabank credit facility may be
increased to an aggregate maximum amount of up to US$40 million (or the
equivalent amount in Canadian dollars), subject to satisfaction of certain
The initial draw down of US$20 million (CDN$19.55 million) will be used
by EGI Financial to increase the capital of its subsidiary, CIM Reinsurance
Company Ltd. ("CIM Re"). CIM Re is a Barbados-based reinsurance company which
will be used to reinsure selected niche and specialty line insurers, which
underwrite business in the United States.
"We are pleased to announce the closing of our credit facility with
Scotiabank," commented Douglas McIntyre, President and Chief Executive Officer
of EGI Financial. "We anticipate this facility will provide us with the
flexibility needed to support the planned expansion of our U.S. reinsurance
business and to continue our profitable growth in Canada."
In addition, EGI Financial announced the formation of its United
States-based subsidiary, EGI Insurance Services, Inc. and the subsequent
appointment of James H. Cizek as the company's inaugural President and Chief
"We are also pleased to announce the appointment of Jim Cizek to his new
position within the organization", said Douglas McIntyre. "With over 30 years
experience in the insurance industry, Jim has proven leadership skills and a
strong background in strategic planning, marketing, product development,
claims and underwriting. He brings demonstrated expertise in managing growth
oriented non-standard auto and niche lines insurance organizations, which will
greatly benefit EGI Financial as we move forward with planned expansion
initiatives in the United States."
EGI Insurance Services, Inc. will employ a small group of experts in
niche and specialty insurance lines. The Company will perform initial due
diligence and ongoing monitoring of potential reinsurance clients on behalf of
its sister company CIM Re. In 2008, the financial results of EGI Insurance
Services, Inc. and CIM Re will be combined and reported as EGI Financial's
International Division segment.
About EGI Financial Holdings Inc.
Founded in 1997, EGI Financial operates in the property and casualty
insurance industry in Canada and the United States, primarily focusing on
non-standard automobile insurance and other niche and specialty general
insurance products. EGI Financial's common shares are traded on the Toronto
Stock Exchange under the symbol EFH.
This news release contains forward-looking information based on current
expectations. This information includes, but is not limited to, statements
about the operations, business, financial condition, priorities, targets,
ongoing objectives, strategies and outlook of EGI Financial for 2007 and
This information is based upon certain material factors or assumptions
that were applied in drawing a conclusion or making a projection as reflected
in the forward-looking information. By its nature, this information is subject
to inherent risks and uncertainties that may be general or specific. A
variety of material factors, many of which are beyond EGI Financial's control,
affect the operations, performance and results of EGI Financial and its
business, and could cause actual results to differ materially from the
expectations expressed in any of this forward-looking information.
EGI Financial does not undertake to update any forward-looking
information. Additional information about the risks and uncertainties about
EGI Financial's business is provided in its disclosure materials, including
its annual information form, filed with the securities regulatory authorities
in Canada, available at www.sedar.com.
For further information:
For further information: Bill Steele, V.P. Business Development, EGI
Financial Holdings Inc., Telephone: (905) 565-7758, Email: email@example.com