Imvescor Restaurant Group Announces New $35 million Credit Facility

MONTREAL, Aug. 31, 2015 /CNW Telbec/ - Imvescor Restaurant Group Inc. ("Imvescor" or the "Company") (TSX: IRG) today announced that it has entered into a new credit agreement (the "Credit Agreement") with a Canadian chartered bank.

The Credit Agreement provides for a three-year senior secured revolving credit facility in an amount of $35 million (the "Credit Facility"), which maximum amount reduces quarterly by $875,000. The Credit Agreement contains customary operational and financial covenants. The Company's annual interest expense savings are estimated to be in excess of $1 million.

A portion of the Credit Facility together with the Company's available cash were used to repay the Company's maturing term loan while the Credit Facility can otherwise be used for general corporate purposes.

"We are very pleased with the completion of the refinancing process, which provides us the financial flexibility to execute on our strategic plan while at the same time significantly reducing our annual interest expense," said Tania M. Clarke, Chief Financial Officer, Imvescor Restaurant Group Inc.

The Credit Agreement will be available on SEDAR (www.sedar.com).

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable securities laws, including, but not limited to, the expected annual interest expense savings related to the Credit Agreement and to the Company's business objectives, estimates, outlook, strategies and priorities and all other statements other than statements of historical facts. All statements contained in this press release other than statements of historical facts, are "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements can generally be identified by words such as "may", "should", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook" and similar expressions. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable securities laws.

Forward-looking statements involve known and unknown risks, uncertainties and other factors outside the Company's control. A number of factors could cause the actual results of the Company to differ materially from the results discussed in the forward-looking statements, including, but not limited to: the Company's dependence on royalty stream, risks associated with quality control, food borne illnesses and health concerns, adverse changes to economic conditions, potential litigation and other complaints, the Company's ability to respond to various competitive factors affecting its operations, the impact of an increase in Company-owned restaurants, compliance with government regulations, the impact of sales tax upon system sales, the Company's dependence on key personnel and third parties, the closure of restaurants, changes in laws concerning employees, changes in the Company's relationships with its employees, changes in consumer preferences, the availability and quality of raw materials, franchise development and growth of the Company's royalties, risks associated with franchise regulations, compliance with regulations governing alcoholic beverages, the protection of the Company's intellectual property, the Company's retail products dependence on the strength of the Company's restaurant brands, environmental risks and regulations, the Company's dependence on technology, inherent risks associated with internal control over financing reporting, the indebtedness of the Company and the restrictive covenants to which it is subject and the risk associated with the Company's dividend policy and other factors referenced in the Company's Annual Information Form and the Company's other continuous disclosure filings which are available on SEDAR at www.sedar.com. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company. These factors and assumptions, however, should be considered carefully.

Forward-looking statements are provided herein for the purpose of giving information about the Company's current strategic priorities, expectations and plans, allowing investors and others to get a better understanding of the Company's business outlook and operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes and should not place undue reliance on the forward-looking statements contained in this press release. The Company assumes no obligation to update such forward-looking statements to reflect new information, future events or otherwise, except as required by applicable securities laws. Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any nonrecurring or other special items or of any transactions that may be announced or that may occur after the date of this press release. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them. The Company therefore cannot describe the expected impact in a meaningful way or in the same way it presents known risks affecting the business. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

About Imvescor Restaurant Group Inc.

Imvescor Restaurant Group Inc. is a dynamic and innovative organisation in the family and casual dining restaurant industry. The Company is a franchise and licensing business that operates restaurants in Eastern Canada under four banners: Pizza Delight®, operating primarily in Atlantic Canada, in the family/mid-scale segment, Mikes® and Scores®, operating primarily in Québec in the family and casual dining segments and the take-out and delivery segments, and Bâton Rouge®, operating in Québec, Ontario and Nova Scotia in the casual dining segment. The Company also licenses to third parties the right to manufacture and sell prepared food products under the Pizza Delight®, Mikes®, Scores® and Bâton Rouge® brands and manufactures and sells vegetarian branded food products in grocery stores and retail outlets under the Commensal® brand.

Our brands:
Pizza Delight®: www.pizzadelight.com
Mikes®: www.mikes.ca
Bâton Rouge®: www.batonrouge.ca
Scores®: www.scores.ca

 

SOURCE Imvescor Restaurant Group Inc.

For further information: Imvescor: 514.341.5544, http://www.imvescor.ca; Investor Relations: ir@imvescor.ca; Frank Hennessey, President and Chief Executive Officer; Tania M. Clarke, Chief Financial Officer; Media Relations: ACJ Communication, Daniel Granger, 514.840.7990

RELATED LINKS
http://www.imvescor.ca

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