Winnipeg, Oct. 30 /CNW/ - Pollard Banknote is pleased to announce today the completion of a new financing agreement with a lending syndicate involving two major banking institutions.
The Toronto-Dominion Bank and HSBC Bank, together with their US affiliates, are the participating lenders in the loan facility, which provides for a committed three-year facility starting October 30, 2009, totaling approximately $96 million Canadian. The facility includes a combination of Canadian and US dollar revolving and swing-line components and replaces the previous bank facility provided exclusively by the Toronto-Dominion Bank. Proceeds under the facility will be utilized to refinance existing bank debt and fund investment in working capital, capital expenditures and ongoing operations.
The agreement provides for a number of financial covenants similar to those under the previous bank facility including minimum current ratio targets and maximum debt service and leveraged ratio coverages. Pricing under the new facility varies from between 100 to 375 basis points over certain base rates, depending on the calculation of financial covenants and the nature of the loan.
The completion of the refinancing is an important step in Pollard Banknote's plan to improve its long term capitalization and strengthen its balance sheet. Pollard Banknote is pleased to have an internationally recognized financial institution such as HSBC Bank join the Toronto-Dominion Bank as a major credit provider.
The Toronto-Dominion Bank and its US affiliate will act as agents for the lending syndicate.
About Pollard Holdings Limited Partnership
Pollard Holdings Limited Partnership ("Pollard Banknote"), through its subsidiary operations, is one of the world's leading full-service lottery vendors and is a major supplier to North America's charitable gaming industry. The firm manufactures instant tickets and provides related programming, design, and marketing support. As well, Pollard Banknote manufactures ticket vending machines, pull tab tickets and bingo paper, and supplies lottery management services (including warehousing and distribution). Established in 1907, the firm is owned by the Pollard family and the Pollard Banknote Income Fund and currently serves more than 45 lotteries worldwide, including some of the largest and most respected lotteries in the United States, Canada, Europe, Asia, and Central and South America.
About Pollard Banknote Income Fund
Pollard Banknote Income Fund (TSX: PBL.UN) is an unincorporated, open-end trust which owns 26.7% of Pollard Holdings Limited Partnership.
This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Pollard Banknote Income Fund ("the Fund") or Pollard Holdings Limited Partnership that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's periodic reports and registration statements filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Fund disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable law.
SOURCE Pollard Banknote Limited
For further information: For further information: Gordon Pollard, (email@example.com); or John Pollard, (firstname.lastname@example.org), Co-Chief Executive Officers, Phone: (204) 474-2323, www.pollardbanknote.com