MONTREAL, March 31 /CNW Telbec/ - MEGA Brands Inc. (TSX: MB) (the
"Corporation") is pleased to announce today that it has received lender
approval for certain amendments to its senior secured credit facilities (the
"Credit Facilities") maturing in 2012 (the "Credit Agreement").
The amendment waives the funded debt to EBITDA ratio covenant and the
fixed charge coverage ratio covenant as of December 31, 2007 and until
September 30, 2008, inclusively. Furthermore, through this amendment, the
lenders consent to the sale of the Stationery and Activities business and to
the release of the liens on the assets sold provided that the net
consideration received from this sale will be used to make prepayment offers
to the current lenders. In addition, the EBITDA definition has been amended
and a new financial covenant is added whereby the Corporation will have to
maintain a minimum cumulative EBITDA at the end of each of its second, third
and fourth financial quarters of its 2008 financial year.
The Corporation believes these amendments provide the necessary financial
flexibility to implement the previously announced Value Enhancement Plan and
to conduct the sale of the AST business through an orderly process.
About MEGA Brands
MEGA Brands is a trusted family of leading global brands in construction
toys, games & puzzles, arts & crafts and stationery. We offer engaging
creative experiences for children and families through innovative,
well-designed, affordable and high-quality products that deliver on our
Creativity to the Rescue promise. For more information, please visit
The MEGA logo, Creativity to the Rescue, MEGA BLOKS, ROSE ART, MAGNETIX,
BOARD DUDES and MAGNEXT are trademarks of MEGA Brands Inc. or its affiliates.
All statements in this press release that do not directly and exclusively
relate to historical facts constitute "forward-looking statements". These
statements represent the Corporation's intentions, plans, expectations and
beliefs. In certain instances, these statements require us to make assumptions
and there is significant risk that these assumptions may not be correct.
Furthermore, these statements are subject to risks, uncertainties and other
factors, many of which are beyond the Corporation's control. The Corporation
disclaims any intention or obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, other than as required by applicable legislation. Readers
are cautioned not to place undue reliance on these forward-looking statements.
More information about the risks that could cause our actual results to
significantly differ from our current expectations can be found in the "Risks
and Uncertainties" section of our annual 2007 MD&A.
For further information:
For further information: ANALYSTS AND INVESTORS: Eric Phaneuf, (514)
333-5555, x2538, firstname.lastname@example.org; MEDIA: Harold Chizick, (514)
333-5555, x2338, email@example.com